Apple’s iPhone to compete with RIM’s BlackBerry

Apple Inc. is loading the iPhone with business-friendly features and is enhancing the device in various other ways to help it compete directly with Research In Motion Ltd.'s BlackBerry.

The Cupertino, Calif.-based company will soon equip the iPhone with the so-called ‘push’ email, which enables the use of email on a phone similar to that on a desktop computer and other features that are already offered by RIM's BlackBerry.

Also, Apple proclaimed its licensing agreement with Microsoft Corp. that would allow the iPhone to integrate with Microsoft's Exchange Server technology, with the help of which users can not only tap into email, but also calendars and contact lists, with extra security.

Besides, Apple is expected to soon open programming interfaces for the iPhone, giving consent to outside software developers to start building their own applications for the device.

Apple Chief Executive Steve Jobs, said of its RIM, “we're not sending them a message, we're sending our customers a message that we're meeting their needs.”

Apple wins hands down, when it comes to looks, but according to analysts the conventional keyboards of other business phones are far more convenient to use. “The iPhone touch-screen interface is not as optimal as the BlackBerry interface for e-mail,”said Shahid Khan, a partner at IBB Consulting Group.

Also, iPhone’s higher price may repel buyers. In-Stat Group principal analyst Bill Hughes believes the iPhone is too expensive to give tough competition to opponents. “There are three or four devices out there today that could work with those applications today that are less expensive,” he said.

Following the revelation made by Apple, RIM shares went down nearly 4 per cent to close at $ 97.92. Apple, too dropped, 3 per cent to $120.93.