El Jobso cares not for the enterprise market. He cares about putting apple at the center consumers’ digital life. The iPhone is made for web surfers not e-mailers and any collateral damage to RIM is only a happy accident. Have you ever tried to build a model in Excel on a Mac? Or even use Microsoft word? The key takeaway is inefficiency. These products are simply not designed for people who don’t use a mouse.... the same way the iPhone is not designed for people who need a physical keyboard. Jobs’ third way, with the iPhone will be to increase the number casual internet users who don’t want to be separated from their favorite blog, or google. You would think this is a small market, but the market for people who wanted to carry 10,000 songs around with them was small in 2001. In the venn diagram of the smart phone market, the intersection of Rim and Apple is small and will get smaller not larger as more casual users enter the market.
RIM’s Domination of Enterprise Market Likely to Continue, 3G iPhone Delay or Not
Research in Motion's (RIMM-NASDAQ) stranglehold on the enterprise market was built on the back of its Blackberry Enterprise Server, a godsend to corporate IT staffs, and by RIM's close ties with carriers worldwide, with over 325 now supporting Blackberries.
But over one-third of Blackberry users are now non-enterprise users, many working from small offices, and with a need for mobile internet capabilities. The lines between work and personal life have blurred for these smartphone adopters, and they demand a similar functionality across consumer and business applications, both at work and at play.
And while iPhone fans are unlikely to thank RIM for sending PALM, Inc shareholders a one-way ticket to the minor leagues, they probably should be concerned with the strategic mistakes Apple, Inc (AAPL-NASDAQ) has made entering the handset market. While Apple might be able to poach a few users from RIM's consumer market, it will be partially offset by unsatisfied users who defect from Apple to RIM. Given the consumer accounts for only 1/3 of RIM's users, and many of these are small business owners who are unlikely to switch, the competitive threat from Apple is likely to be modest, particularly in the early innings of the battle.
The limitations of the iPhone certainly do not pose a threat to RIM's bread and butter market, for the following reasons:
1) Integration with corporate email:. Some rumors suggest Apple is working on MS Exchange integration, but where is Lotus or Novell? With no proven integration with corporate email, IT managers are not likely to stick their neck out.
2) Developer Support: Third party developers are working on it, but it has been slow to coalesce.
3) Carrier Availability: Apple strategy of limiting carriers to drive consumers to them does not work for enterprise IT managers who need more than AT&T.
4) Touchscreens Hamper Typing Speed: This hot button topic has been widely debated, but button keyboards are the only answer for many consumers. RIM’s “Thunder” touchscreen should also slow defections to Apple for those RIM users who want to experiment with toys.
5) The Battery: Enterprise users who are on the go cannot afford to have their battery go dead, and the inability to swap should not be discounted. A serious error?
If this is not enough, T-Mobile is already offering BlackBerry’s consumer internet service for $9.95, which will spur adoption in a new segment of the market.
And while Apple shareholders are brave in the locker room, they showed little intestinal fortitude Thursday when market chatter over a delay in the 3-G iPhone began to circulate:
Eric Savitz reported on the “rumor” of a rumor:
Were it not for the recent crumbling of the stock, and the questions about the drop raised by readers, I would hesitate even to pass this along. But here goes. Apple (AAPL) shares appear to be losing ground this afternoon on rumors involving possible delays of the 3G iPhone. Now, I would point out that Apple has not even officially confirmed that there will be a 3G iPhone; but the device has been widely expected to debut on June 9, when CEO Steve Jobs give the keynote at the upcoming Worldwide Developers Conference at Moscone West in San Francisco.
One trading source tells me there are “rumors of a rumor” of a 3G delay. You have to love stocks moving on rumors of rumors. Meanwhile, TheFlyOnTheWall.com is reporting that the weakness is being “attributed to vague concerns regarding 3G launch.” Tech Trader
Apple’s stock is in the hands of a large and rowdy cult who are whipped into a near daily frenzy by bloggers who pander to them in an attempt to rack up page views. But with the rally in the stock approaching its 4th birthday, and clearly long in the tooth, shareholders might want to strongly consider wearing diapers during the trading day. It is possible the shares have hit a valuation ceiling that can only be surmounted with a bit of patience, and the $200 level is likely to provide stiff technical resistance.
Apple shareholders can always turn to these two knuckleheads in the video below for warm fuzzies; and while their consistent anti-RIM bias might be popular with the geeks, the recent 52-week highs in RIM’s stock are the stock market’s equivalent of trash talking. Although truth be told, both stocks might want to call a time out and take a breather, given their steep ramps over the past year.
May 22nd
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Apple Slides On Vague Rumors Of 3G iPhone Delay
Tech Trader
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