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Apple takes on BlackBerry for business users

Posted Mar 06 2008, 03:11 PM by Kim Peterson
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A friend of mine was thrilled to get an Apple iPhone for Christmas from his wife. But he returned it a few weeks later. Why? Because he couldn't access his work e-mail on the device. The iPhone, for all its cool features, lacked one essential tool: the ability to sync easily with corporate e-mail on the Microsoft Exchange server.

How many times has this story been repeated? That's why today's news from Apple is huge. The company said it will work with Microsoft to license the ActiveSync synchronization program, which lets iPhone users get e-mail, contacts and calendar information from Microsoft Exchange servers. It sounds like this could happen sometime in the summer.

The move means Apple is going after Research in Motion's ubiquitous BlackBerry in the corporate market. But this isn't a death knell for Research in Motion, which has a huge lock on enterprise customers. RIM had a 73% market share for smartphones in February, according to ChangeWave Research. Palm's market share has declined over the past year to 18%, and Apple's iPhone is around 5%.

RIM shares fell nearly 4% today to $98.02 and Palm dropped almost 5% to $5.94. Apple shares closed down nearly 3%, perhaps because the company didn't say anything about a faster, 3G version of the iPhone expected later this year.

So after being all but annihilated in the business PC market, Apple could finally make its way into corporate environments with the iPhone. Just as the iPod boosted consumer Mac sales, perhaps a business-oriented iPhone might help Apple make inroads for the Mac into the enterprise. But that would be years down the road at the earliest.

Also today, Apple unveiled a software kit that lets developers create games and other programs for the iPhone. Apple will share the revenue from the programs with the developers.

Here's what others are saying about today's news:

Fortune: "Finally! Eight months after it was introduced, the iPhone is finally getting the e-mail service it deserves."

Between the Lines: "Enterprise strategy? I didn’t think Apple had one -- or at least one it talks about. That’s about to change though."

Seeking Alpha: "Is this big? Well, it will certainly help the iPhone win business customers, and it will mean that Blackberrys and Treos will have to get a whole lot better or they're going to lose sales to Apple."

IT exec George McQuillister, in Computerworld: "The SDK release seems to want to say that Apple has the enterprise blessing and that everything is wine and roses, but I will believe it when I see it."

24/7 Wall Street: "This is going to help get the iPhone more subscribers and more users.  But the company is going to find that this is not just an effort that pays off rapidly.  This is a quest that will take the Knights of the iTable many years." 

Disclosures: I don't own shares of any companies mentioned in this post. And while Microsoft owns this blog, Microsoft doesn't control, censor or otherwise have any editorial influence over what I write.

Comments

 

Love my Nokia E61. Nearly 2 years old and I still love it. Symbian is much more customizable and so many 3rd party apps. I use it for GPS in my car with TomTom. I have dropped the phone countless times - indestructable. The keyboard is fantastic.

Why Nokia does not sell more phones in the US amazes me. Samsung/Motorola/RIM interfaces pale in comparison.

I have been using BB for a little while. It is nice to get all the e-mails but replying back takes a while . This phone sucks when it comes to responding back. All other features are ok. RIM needs to get a clue. I think in their erogance they belive they know what people want. What people like is Iphoen. Its better to use and packed with features.

I agree with Mr. Donaldson: it is an individual thing. Furthermore, competition helps improve the overall quality. I'm a former PPC user, now converted to BB with the 8830. I work in outside sales, and I find email timeliness superior with the BB, rather than the combersome synch with Windows. I am a petite woman with small hands, so the keys are just right on the BB 8830. Also a plus in my book is the lighter weight of the 8800 series. The iphone is just too thick and heavy.

i thought ActiveSync required a connection to the PC to sync email, if that is still true, how would that make it an Enterprise device? With Blackberry and the Blackberry enterprise server, emails are transferred wirelessly to the device, there is no need to ever connect the device to a PC, all email, contacts, calendar and other items are synched over the air. Until Microsoft can come up with a way to do that securely without having corporations punch giant holes in their firewalls then Blackberry and BES will continue to be the standard.

All of you blackberry users who are criticizing the iphone are typical of the old school corporate employees.........dinosaurs. In order to retain young, future of the company employees, companies are going to have to adapt and that includes technologically. Why not offer whatever phone you want? The apple product is far superior to the current blackberry lineup, but because most narrow-minded, non-risk taking, corporate suck-ups want the status quo to remain, they will do just what they've always done........nothing. Continue to promote the status quo and watch as you are laid off and your job sent to India or China. Good luck.

I like the iphone but the volume is way too low and too many times I am not able to recieve email downloads saying" This message has not been downloaded from the server".  Comcast says it is not them.Outlook Express says itis not them. Apple says it is not them. Do not know what to do

My company currently is part of the Enterprise Beta Program that Apple has setup for release of their iPhone software v2.0. It started with bascially the original software for the iPhone (1.1), with no patches, fixes, or anything... That would give iPhone users something to gripe about... Constantly locking up, rebooting, hanging up the calls, etc., randomly!

Since we first were granted access to the program, we have undergone 5 different software upgrades, and I'll tell you what - they are making headway. My company is BlackBery based for our corporate email, which includes myself as a user, and the comparison between the two is getting very very good... Now before coming to this company, I had never used a Black Berry, and until this EBP, I have never layed hands on an iPhone, iPod, or iAnything...

Our main goal in this program, was to see how the iPhone would encorporate into an Exchange environment with 10,000+ mailbox users on it. We also are looking for an alternative to something other than the BlackBerry's, where RIM is constantly doing upgrades, downtimes, etc., and not just that, but don't advertise them directly. We have to find them through "other sources" on the web, and inform our users all over the world that their BlackBerry will be unavailable for 5 or 6 hours, yet again... Other than that, the BlackBerry is a very reliable and stable tool in our organization.

The exchange interface is getting better. Receive, reply, forward, create new emails, create and reply to meeting invites, Add, change, remove Outlook contacts, bascially everything you can do from Exchange is *almost* available on the iPhone. Most of the time, the ActiveSync feature gets information to my iPhone honestly faster than it does the BES server.

The Wi-Fi connectivity is very stable right now, and the ability to interact with Cisco VPN and other equipment will make it very nice for users to still get their mail, in those environments that don't have Web Access to their Exchange Servers.

The web-browser is nice, because it is a full version of Safari, instead of the limited BlackBerry browser, and the MapQuest page is nice as well.

The main advantage our BB's have right now is they are stable and widely and more commonly used.

We are getting updates quite often on the program, and Apple does seem to be making a LOT of headway on this product. 99.% of their changes each time an upgraded version comes out, is based on users feedback in the program. Bug submittals, Enhancement requests, etc., which also makes it nice, because the features being put on, are the features the users are finding more and more are needed in an everyday environment, since the only way to get on the program was to meet certain networking requirements Apple was looking for, instead of spreading the EPB out to "a bunch of nerds just showing it off to their friends".

Anyways, that is my opinion of the iPhone and the BlackBerry... Take it with a grain of salt, as others opinions will vary...

None of them are worth a damn if they don't incorporate GPS. What is it with Appple that they overlooked this simple and very important feature!!  At least RIM is getting it right with the new Blackberry Bold, although I can't say much for the size of the screen

what happened to wearable technology?  We can't get past the "Game Boy" gadget?

I wish the Iphone would work on other networks.  Where I live, AT&T does not have good coverage.  I am unlike others, a loyal customer and I prefer to stay with my current provider.  If Apple would produce a phone that would work on other networks they would sell a lot more, thus giving them more of the market share rater than just trying to get more of the corporate market.

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