Apple’s stock rose as much as 4 percent today on a report by research firm iSuppli that the iPhone snatched 1.8 percent of the mobile handset market in July, outselling all other so-called “smart phones.” That category includes Research in Motion’s legendary Blackberry. According to iSuppli, sales of the iPhone also matched those of LG Electronics’ Chocolate, the most popular “feature phone” (a less-capable category of cell phone) in the United States.

Remember, Steve Jobs’ stated goal for the iPhone was to grab just 1 percent of the cell phone market. For the iPhone to nearly double that in its first month is a tribute to Apple’s sixth-month marketing frenzy leading up to the device’s retail debut.

The bigger question here is whether the iPhone will be able to sustain its market share as the novelty gradually wears off. I would consider the iPhone an ongoing success even if its share drops much closer to 1 percent. Sales at that level would still meet Apple’s expectations, though doubtless be greeted by headlines such as “iPhone sales plummet,” or similar sensationalist drivel.

But our friends at iSuppli don’t foresee any drop-off in iPhone sales; on the contrary, they project steady sales growth for the next four years. The El Segundo, Calif.-based company repeated its prediction of 4.5 million iPhones shipping in 2007, “rising to more than 30 million units in 2011.” Again recall that Jobs has set an iPhone sales goal of just10 million over the first 18 months. An iSuppli press release gives iPhone sales projections of 13.5 million for 2008, 21.1 million for 2009 and 26.8 million for 2010.

Sales figures like that – if they indeed come to pass -- will not only please Steve Jobs, but everyone else who holds AAPL stock.