Apple iPhone's latest and greatest applications may attract new business users but Research in Motion Ltd. investors needn't worry, say analysts. There's lots still to like about the ongoing BlackBerry growth story.
Apple Inc. created big headlines at a media event Friday morning when it announced that iPhone will now support connections to Microsoft Exchange servers using ActiveSync, allowing users access to push email, calendars and contacts.
Apple also released a Software Development Kit (SDK) that allows third parties to create applications for iPhone and iPod Touch. Among the advantages of SDK, is the potential of turning iPhone's and iPod Touch's unique touch controls and accelerometer into compelling mobile gaming platforms.
Analysts viewed the announcement as positive for Apple, boosting their confidence that the company will achieve its 10 million unit target for iPhone sales in calendar year 2008.
RBC Capital analyst Mike Abramsky said in a note to clients that the MS Exchange integration will help the company gain traction with business users but added it should not threaten RIM's leading position in the segment.
"While offering a superior interface, browsing, design and media capabilities, iPhone lags BlackBerry when it comes to typing messages, for message-centric businesspeople," he wrote.
He added that RIM is likely to remain a favourite of IT departments, who are "notoriously fickle on manageability, control, support and security."
Mr. Abramsky continues to rate RIM shares an "outperform" with a US$140 price target. For Apple, he maintained his "outperform" rating and left his $175 price target unchanged.
TD Newcrest analyst Chris Umiastowski, meanwhile, reiterated his "buy" rating and US$140 price target on RIM shares.
While Apple's SDK and video game demonstrations may give customers reason to choose iPhone, he stands by his original argument regarding RIM vs. Apple.
Says Mr. Umiastowski: "We see RIM as fundamentally a product of messaging. People whose priorities are email, SMS and IM are more likely to purchase a BlackBerry, and people whose priorities revolve around music, pictures and mobile web browsing (reading, not interacting) are probably going to prefer an iPhone."
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