by , 7:05 PM EDT, October 21st, 2008

Apple's iPhone sales have grown so much that they accounted for 39 percent of the company's business. Revenue from iPhone sales has grown to the point that the company decided that while it will continue to account for sales based on a subscription model, it will also report non-GAAP financial figures.

iPhone sales are accounting for about US$4.6 of the company's total business. The company's reported quarterly revenue based on the subscription model for iPhone sales came in at US$7.9 billion, but without subscription accounting hit $11.8 billion -- some 48 percent higher.

"As you can see, the non-GAAP financial results are truly stunning," said company CEO Steve Jobs.

The company managed to outsell Research In Motion's popular BlackBerry lineup. iPhone sales for the fourth quarter hit 6.9 million units, while RIM's BlackBerry clocked in at 6.1 million. Apple also sold enough iPhones to move into the third place slot for the quarter based on revenue.

"Apple outsold RIM last quarter, and this is a big milestone for us. RIM is a good company that makes good products," Mr. Jobs said. "But even more remarkable is this: Measured by revenues, Apple has become the world's third largest mobile phone supplier. I know this sounds crazy, but it's true. As measured in revs, not units, Apple has become the third largest mobile phone supplier."

Apple plans to continue using its subscription model to account for iPhone revenue, which means that customers will still be able to get iPhone system software updates for free. The company, however, will also report non-GAAP figures so investors will have a better idea what kind of impact the iPhone is having on quarterly numbers.

Apple is currently trading after hours at $102.62, up 11.13 (12.17%).