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Analyst: iPhone 3G poses immediate threat to RIM

updated 09:25 am EDT, Wed July 16, 2008

iPhone 3G threat to RIM

The iPhone 3G stands to deeply undermine leading smartphone maker Research in Motion, argue analysts with Needham & Co.. The firm contends that while RIM is firmly established in the enterprise world, and it has made dramatic gains in the consumer world with phones like the BlackBerry Pearl, this success has not been due to impressive new offerings so much as a lack of any substantial competition, including even the original iPhone. All this has changed with the 3G, says Needham.

With Apple having already announced 1 million in 3G sales, and demand remaining "unabated," according to Needham, the device is poised to eat into RIM's potential growth. Needham is thus shifting its rating of the company's stock from "hold" to "underperform," and lowering EPS (earnings per share) ratings for both 2008 and 2009.

It is believed, though, that RIM is unlikely to disappear from the smartphone realm. "Apple and RIM are not engaged in a zero-sum game," writes Needham, and as the smartphone market grows, it is possible that the two companies may settle into their own respective niches.

by MacNN Staff



  1. OtisWild

    Joined: Dec 1969


    iPhone 2.0 not quite...

    ... ready for the enterprise, as ArsTechnica shows in their recent review.. No editing of MS Office files, no Exchange search, limited support for Exchange features besides push email..

    If you're looking for a 3G to be your office home all-in-one megaphone, it may take a few OS updates first..

  1. gitcypher

    Joined: Dec 1969


    re: not quite

    Agreed. I really don't see any shift in relative market share between Apple and RIM. With both 3G entrances into the market, people will still use blackberries for what they are. You'd be pretty hard pressed to find a company that would scrap it's entire BB infrastructure (including server and deployed phones) to switch to the iPhone.

    And as for being a business phone...
    iPhone:Blackberry = Zune:iPod

    Yeah, it get's the job done, but Apple never plays the catch up game.

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