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New BlackBerry coming. iPhone who?

Posted May 12 2008, 01:25 PM by Kim Peterson
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Research in Motion announced its new BlackBerry today, which the company clearly developed with Apple's iPhone in mind. The BlackBerry Bold is gorgeous, and positions RIM for a smartphone war this summer against Apple's upcoming 3G iPhone.

RIM shares are up 7% on the news as investors applaud the first major BlackBerry release in more than a year. But Apple investors aren't too worried: shares rose 3% today on word that the HBO cable network might sell shows on iTunes.

Here's where the two companies stand heading into the summer. The BlackBerry still commands the smartphone market, having made extensive inroads into the enterprise and becoming the de facto business phone. It has a 40% market share. But the iPhone is a strong contender, hitting a 28% market share in Q4 despite a huge flaw: incompatibility with the Microsoft Exchange e-mail server (Apple is working on a fix).

Apple will likely upgrade the iPhone this summer with a 3G model that offers faster Internet connectivity. The BlackBerry Bold also runs on 3G. There are other similarities: Both phones will run on AT&T's network and could be in the same price range.  The biggest difference is that the iPhone uses a touch-screen and the Bold does not.

The Bold has lots of bells and whistles: built-in GPS, a 2-megapixel camera with flash, 1 GB of flash memory and a color screen that's getting rave reviews. It plays movies and music, though probably not as seamlessly as the iPhone.

Here's where a smartphone war between these two gets interesting. Both companies already have loyal users. The battle will be for new smartphone users, and for those willing to switch sides. RIM has a comfortable stake in the corporate environment, but it needs to catch up to Apple in the "cool" department. RIM needs to rev up its marketing and position the Bold as sexy, hip and trendy. Choosing the name "Bold" suggests it's going this direction.

Apple has no shortage of cool. But the company's savvy seems to evaporate when it comes to the business world. The 3G iPhone is the perfect opportunity for Apple to make a big push into the corporate environment that abandoned Macs long ago. 

We're going to see a fascinating battle between these two companies over the next few years.  

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

WSJ: "The most important feature of the new BlackBerry, however, is that it acknowledges that, as work encroaches into people’s personal lives, people want to bring elements of their personal lives into their professional lives." 

Citigroup analyst Jim Suva: Bold could boost RIM's quarterly shipments by 200,000 to 400,000. 

UBS analyst Jeffrey Fan: "We believe RIM's broadening portfolio should widen its appeal to the mass market."

Ars Technica: "It doesn't take a rocket scientist to see that RIM has taken a few design tips from the iPhone this time around." 

Comments

 

Blackberry kept the keyboard and small screen because thats what their current consumers want.  they know its better than an iphone keyboard so why would they change it.  as for the screen, the clarity is simply amazing on the new Bold.  It's got the same number of pixels as the iphone but on a tighter screen and puts the iphones clarity to shame.

i do own an iphone (one with broken glass mind you) and i am seriously considering switching over to the BB side of things when this comes out.

I thought T-mobile would be getting this phone first?

I agree that AT&t has fewer droped calls and the voice and data quality is much better than Verizon Wireless.

@steve "good ole microsoft you think they would spend more time trying to get The Vista OS working and think about the people they ripped off by selling windows 64 bit xp that you can't find progams to work with it....now they are going to try to sell a phone to the public and call it they best LMAO Bill better spend more time getting the crap that don't work  going first ....i have 5 i phones for me my wife and 3 kids and it is the best money i have spent on phones in a long time it will do any thing you want and more and wait till the june update with all the new apps ..go wipe the  snot bubbles off your face Bill  The I phone will not be touched by Microsoft!"

What the hell are you talking about? This is RIM. My god you Apple fanbois cant get Microsoft outta your pea sized brains. Give it up

Why either one is with ATT I can't figure this out. I use a ATT phone for work. They have the fewest dropped calls beacuse you can't have a dropped call if you can't get service. My personal phone, Verizon always has coverage.  I know our regional Sprint Mgr and he agrees that Verizon has the best coverage of any carrier, but claims sprit is the fastest. Apple needs to figure who is best for the Iphone, ATT is not the one.

is everyone intentionally missing the boat?  Why doesn't anyone ever bring Nokia into the discussion?  The most sought after phones on Craigslist and ebay are Nokia phones.  The N95 w/8gig is the hottest phone out there.  I too use a blackberry and an Iphone and I couldn't trade either has made even across for an N95.  They are still number one in the cell market and the benchmark for all others.  A gimmicky iphone or an over business loaded blackberry does not compete with real world everyday users.  They iphone hype is over and the blackberry is still a business staple.  If you want function, status, and a great phone go with the #1 manufacturer world wide.  IF you don't believe me I have one of each for trade.

I would really love to get the new Bold but in the area that I llive AT&Ts service is  patchy and drops too many calls if you can get service at all.  I hate that this phone will be exclusive to AT&T.  I am a loyal Blackberry user and wouldn't switch for anything.  Too bad this phone had to go to AT&T!!  

I am the first to say that I love the way the Iphone looks...although it seems a bit BIG. I currently have a BB Pearl and love it, but could be tempted by something new and cool. I am always looking out for the next great thing. But being cool doesn't trump being good. In the business world cool doesn't mean nearly as much as being efficient! The people I know with an i phone have a wonderful photo album and i pod....and little more. Can't we get all this technology together? BTW I will NEVER buy a phone that requires you to stick with one carrier...no matter how great it is!

Tear down the telcos. Tear down locked phones. Give me My tri-band phone with wi-fi and loose the qwerty. Give me a voice recognition software so I can tell my phone what I want done; don't need to see the phone because I'm not watching any video on a stupid little screen. That's why I have a home system. When I become homeless, then I'll consider the phone video. Oh, and stop charging for texting, it's a gimmick and it doesn't cost you anything to broadcast that data. It occupies empty unused space in  the data cloud.

It's really funny how many of you are so uneducated. RIM has the business market, and since the pearl they have made a very large impact into the general consumer market. Many of you don't like microsoft however many of us also dont like mac, or anything mac. Also, many of you are from the states, however Im just a few hours from RIMS office in Canada. Trust me when I say RIM has the market here, whether the Iphone came here or not they still would win. Full QWERTY key board, stable software, great tech support (they have computer programmer students as tech support). Also, think of price. Many corp. already have their e-mail services set up with with BB, and therefor it would be costly to invest into an iPhone for a few of your employees when the rest all have BB. not to mention the employer would deal with the "why does her get an iphone and i dont?". iPhone simply can't compete with the BB in the corp. world when you think realisticaly and from a corp. stand point. And with this model they will hit more of the general consumer market.

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