The iPhone, which ranked second in the last year's list, has been a phenomenon, with more than five million pieces sold in just the three months to the end of June 2008.
The touch-screen smart phone has left behind James Bond car maker Aston Martin, which was placed at the second spot in an annual list of 20 products and companies that people most want to have or use.
US giant Apple itself got the third position in the CoolBrands 2009 list, which was voted on by the public, from a shortlist compiled by a panel of experts including playwright Damian Barr and designer Sadie Frost.
At the fourth spot was the Apple iPod and standing fifth in the list was gaming giant Nintendo, maker of the Wii.
"The iPhone is something everyone's been talking about," the Sun quoted CoolBrands chairman Stephen Cheliotis, head of the Centre for Brand Analysis, as saying.
"There has been such a buzz around it - and people that haven't got one, want one.
"But what we've also seen this year is people want something that is aspirational but that's not going to break the bank. Consoles like the Wii are fun and enjoyable as well as being innovative," he added.
The top 20 in the CoolBrands 2009 list are:
2. Aston Martin
9. Bang and Olufsen
10. PlayStation 3
12. Tate Modern
13. Dom Perignon
14. Virgin Atlantic
18. Vivienne Westwood
20. BBC iPlayer