Apple could grab as much as 10 per cent of the US smartphone market by the end of the year, according to the analysts at Strategy Analytics.

Associate director at Strategy Analytics Neil Mawston said: "We forecast 20 million smartphones to be sold in the US during 2007. We expect Apple and its iPhone portfolio to account for two million of that total, giving it a 10 per cent share by the end of the year."

Chris Ambrosio, director of wireless device strategies at the company observed: "Apple has a strong brand and good retail presence; now it needs to deliver on the product. Competitive pricing, of course, will be critical, as will the device's usability and reliability."

David Kerr, vice president at Strategy Analytics, added: "A critical question will be what percentage of iPhone buyers will be churning from other operators? A second key issue is whether the iPhone will draw users who would otherwise have bought Nokia N series music and multimedia devices, eroding their premium tier share, or will iPhone most dramatically impact the SEMC Walkman series fortunes?"

The analyst predict iPhone will drive $1.4 billion in new revenue for Apple and could potentially sell as many as three million units in the US by the end of the year - beyond the 10 per cent slice it predicts.