Frankfurt, Germany - Apple's iPhone outsold all other smartphone models in the U.S. in July, taking 1.8% of the total U.S. handset market, according to a report from market research firm iSuppli.

The firm said the iPhone topped sales of smartphones like the Blackberry, and devices from Palm, Motorola, Nokia and Samsung, and equaled those for LG's Chocolate phone.

iSuppli expects that Apple will sell 4.5 million iPhones this year, and more than 30 million in 2011.

The device is set to go on sale in Europe later this year.

Despite the fact that Apple isn't slated to launch the iPhone in Asia until 2008, the Associated Press reports that electronics markets in China are now carrying unauthorized versions of the iPhone that sell for as much as $1,170.

The Chinese iPhones aren't fully functional, as they can only make calls and send text messages, and are unable to receive calls or voicemail.

Last month, hackers discovered a means of unlocking the iPhone so that it will work with carriers other than AT&T.

Related Links:
http://news.yahoo.com/s/nm/20070904/tc_nm/iphone_sales_dc_1 (Reuters)

http://news.yahoo.com/s/ap/20070904/ap_on_hi_te/china_iphone_2

http://www.isuppli.com