UPDATE: iPhone 3G is officially the number 1 phone in the United States! Official numbers indicate that the iPhone is now the absolute biggest seller here in the U.S.

Yes everyone, the day has come and Apple is surely celebrating right about now. Apple Inc.’s iPhone 3G has just surpassed Motorola’s RAZR in sales here in the US. During this 3rd quarter, Apple took down Motorola’s 12 quarter streak, NPD reports.

“The displacement of the RAZR by the iPhone 3G represents a watershed shift in handset design from fashion to fashionable functionality,” says NPD’s director of industry analysis Ross Rubin in a press release.

This really is amazing to say the least. Just a few months ago, when Steve Jobs took the stage once more to announce the worst kept secret ever, Apple wasn’t selling a single device, but now the iPhone 3G out shined Motorola’s RAZR. Alright, let’s analyze this. Of all of the reports that I have been seeing and reading about in the last 24 hours, it appears that Apple’s iPhone also beats the Blackberry and the Palm Treo. How is this? Well, let’s take a look, SquareTrade looked at 15,000 handsets from each of this contestants and compared and contrasted.

Malfunction rates (per 15,000 handsets):

iPhone (average) 5.6%

Blackberry (average) 11.9%

Palm Treo (average) 16.2%

This is good news, also please note that these are out of 365 days (or 1 exact year). So this isn’t really accurate data for now, considering iPhone OS 2.0 – 2.0.2 and all… Here’s some bad news, iPhone’s are more prone to breaking (as some of us may know). They are so sleek that sometimes people drop them, spill alcoholic beverages on them, or accidentally throw them when using an application…

Breakage:

iPhone (average) 12%

Blackberry (average) 9%

Palm Treo (average) 9%

Bottom line: Everything Steve Jobs said about the iPhone seems to be coming true. This little phone is spawning a major consumer and business revolution, with sales far exceeding so many of those early expectations. Lot’s of people would say “why would someone buy something that expensive in this bad economy?” well I’ll tell you. It does everything you need it to do! Music, Video, Photos, iTunes Store, and ever growing App Store, Mail, YouTube, Widgets such as weather, maps, stocks, and notes, and those are just the basic applications. Did I also mention it makes calls? It does this much, and yet you still have no clue why people love the iPhone? Well, I’d get to a hospital as soon as I could… (just kidding)