iPhone topples the RAZR as best-selling U.S. phone

After a three-year reign at the top of U.S. handset sales charts, the mighty Motorola RAZR V3 had at last been dethroned. The new king of the county? You guessed it: The iPhone 3G.

The NPD Group announced Monday morning that in the third quarter of 2008, the iPhone 3G (which has sold more than 13 million units worldwide) was the top-selling consumer handset in the U.S., followed by the RAZR V3, the BlackBerry Curve, the LG Rumor, and the LG enV2.

The NPD press release notes that the RAZR V3 held the number-one position for a full 12 quarters, or three years—not surprising, given that most carriers offer the V3 for free with a new two-year contract.

Apparently, though, cell phone shoppers are happy to cough up more money for more features—and as the NPD observes, all the phones in the Top 5 (save the RAZR) are messaging phones of one type or another.

Indeed, the "average selling price" for U.S. cell phones rose 6 percent to $88, according to the NPD (although overall sales fell 15 percent compared to the same period last year). And the 8GB iPhone 3G, while $300 cheaper than the original $499 4GB iPhone, is still relatively pricey at $199—and then there's the mandatory $30/month data plan, which doesn't include text messaging.

So, I'm curious: Even with the economy going over a cliff, would you rather spend more money for a phone (like the iPhone) with plenty of data features? Or would you rather get a bare-bones handset (like the RAZR) for free (with a new contract, of course)?

Related:
The NPD Group: iPhone 3G Leads U.S. Consumer Mobile Phone Purchases in the Third Quarter of 2008 [NPD Group]