iPhone 4 remains top-selling US smartphone

Despite iPhone 5 approaching, Apple iPhone 4 is still NO 1 hot sale smartphone.

Analyst T. Michael Walkley with Canaccord Genuity revealed in a note to investors on Tuesday that checks with U.S. carriers indicate that sales of the iPhone 4 remain on top ahead of the iPhone 5 debut, despite the fact that the iPhone 4 is more than a year old.

"Our checks indicated strong sales of the iPhone 4, as it remained the top selling smartphone at AT&T and Verizon despite increasing consumer expectations for the iPhone 5 launch," he wrote.

"During the holiday season, we anticipate strong sales of the iPhone 5, as we anticipate a strong global launch with increased distribution to new carriers including Sprint in the U.S. market."

Walkley's research found that the iPhone 4 remained the top-selling handset at both AT&T and Verizon in August. In addition, the $50 entry-level $50 iPhone 3GS was the second strongest selling handset at AT&T. Verizon does not offer the iPhone 3GS.

The iPhone 4 and iPhone 3GS beat out the $200 Samsung Infuse 4G, which was the third-best selling handset at AT&T. And at Verizon, the Samsung Charge 4G came in second, while the HTC Thunderbolt 4G was third.

"While Motorola Mobility and RIM enjoyed stronger sell-through trends in 2010, our (first half of calendar 2011) checks indicate a clear trend toward increasing share for Apple, HTC and Samsung," Walkley wrote.

In addition to strong sales of the iPhone 4, he also found that the 3G-capable iPad 2 is the top-selling tablet at both AT&T and Verizon, which are the only two carriers that offer the iPad in the U.S.

"Based on solid demand trends for iPhone/iPad, poor sell-through trends for competing tablet offerings, and the ramping iOS ecosystem driving longer-term replacement sales, we believe Apple will maintain dominant value share of both the tablet and smartphone markets to drive healthy long-term earnings growth," Walkley said.

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Google's Android More Vulnerable Than iPhone- iPhone is Best

According to Trend Micro Inc., the world's largest corporate security software provider, devices running Google's Android mobile operating software are more vulnerable to hackers and viruses than are Apple's iPhone devices.

During a recent interview in Taipei, Trend Micro chairman Steve Chang told Businessweek about Android's potentially dangerous security flaw:

Android is open-source, which means the hacker can also understand the underlying architecture and source code We have to give credit to Apple, because they are very careful about it. Apple has a sandbox concept that isolates the platform, which prevents certain viruses that want to replicate themselves or decompose and recompose to avoid virus scanners.

Chang points out that Android's open-source software offers more of a free-for-all scenario. "Chang said he's betting Android users will start to buy more security software for mobile devices," writes Businessweek.

This news comes at a time when the Android OS's popularity is growing rapidly in the United States. Indeed, Nielsen figures from June 2010 through November 2010 show Android to be the leading mobile operating system among recent smartphone buyers.

Although Apple's app approval process is notoriously strict, Apple devices may still be vulnerable to malicious software and third-party hacks. For example, iPhones are prone to phishing attacks, which can dupe the user into handing over personal data.

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Apple expected to hold event by Valentine's Day to announce Verizon iPhone

Apple is expected to hold an event "very soon," perhaps by Valentine's Day on Feb. 14, 2011, to unveil a new CDMA version of the iPhone compatible with U.S. carrier Verizon's network.

In a report issued Wednesday evening by Bloomberg Businessweek, the alleged coming debut of the iPhone on Verizon is portrayed as an "enormous problem" for AT&T, the current exclusive carrier of the iPhone in the U.S. While AT&T has had sole access to the iPhone since 2007, problems with its network have caused bad press, including a recent reader poll from Consumer Reports ranking AT&T the worst carrier in America.

"Verizon enjoys a reputation for reliability," author Peter Burrows wrote. "AT&T is notorious for dropping calls, especially in densely populated places like New York and San Francisco where iPhones are most common and cell towers get loaded."

The report said that Apple would hold one of its own "splashy product introductions to announce a new version of the iPhone that work's on Verizon's network," and said that event would "maybe" come by Valentine's Day.

Some have speculated that Apple would instead allow Verizon to announce the product at the Consumer Electronics Show in early January, an uncharacteristic move for the typically controlling iPhone maker. But the report specifically stated that a CES unveiling is not in the plans.

"Apple's introduction of an iPhone for use on Verizon's network will come sometime after the Consumer Electronics Show in Las Vegas in early January, according to a person familiar with Apple's plans who is not authorized to discuss them publicly," Burrows wrote.

But while the apparently loss of exclusivity on the iPhone is cause for concern for AT&T, the report also suggested that Verizon could experience its own growing pains when Apple's smartphone arrives on its network.

"At least initially, Verizon's iPhone may have weaknesses compared to AT&T's," the report said. "The expense and hassle of changing carriers could also work to AT&T's advantage."

It also noted that iPhone customers may be less likely to switch from AT&T if they are still under contract, as the carrier upped its termination fee to $325 in May of this year. The carrier also offered early upgrades for some iPhone 4 buyers whose contracts had not expired, locking them in to another two full years.

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