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iPhone vs. BlackBerry: Apple Has Fallen But RIM Can't Get Up

Posted Nov 10, 2008 02:20pm EST by Aaron Task in Investing, Electronics

Apple shares have fallen on hard times lately and the company remains vulnerable to a consumer slowdown. But, relatively speaking, Steve Jobs & Co. are holding up much better than its rivals, notably Research In Motion.

In the third quarter, the iPhone was the best-selling cell phone in the U.S., according to NPD, continuing its remarkable run.

"I have never seen a product adapted so fast," says Apple shareholder Howard Lindzon of Knight's Bridge Capital. "They are the best retailer on the planet."

By contrast, Research In Motion is "running around, chasing Apple," Lindzon says. RIM is "not going to win that war."

While Apple has one phone, which is selling like hotcakes in a tough market, RIM is "fighting battles on many fronts," says the blogger and VC investor. "Apple is much better positioned than RIM."

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78 Comments

GeorgeK
GeorgeK - Monday November 10, 2008 02:30PM EST

The cable companies are down and its just like them the phone compaines are next. Soon we will all be selling apples on the street corner... I want the corner close to the SOUP Kitchen. Apple is going go back to the old definition... FOOD. Come on tell us what is happening to the FDIC and Treasury program to fix housing.. or is this just an advertisment site.

madmilker
madmilker - Monday November 10, 2008 02:33PM EST

you know what they say bout gettin' old.

Steve
Steve - Monday November 10, 2008 02:43PM EST

From what I read and hear it is only a matter of time before RIM is back on top. Let's take a look again after this quarter is over.

Yahoo! Finance User
Yahoo! Finance User - Monday November 10, 2008 02:46PM EST

TT, do you think maybe it would have been fair to say that the iPhone represents a tiny portion of AAPL's share price? Your article is disingenious at best and represents a hero worship of AAPL at worst. Blackberry is still the phone of choice for security conscious corporate users and the iPhone is not even close in this arena. Get real.

Brett
Brett - Monday November 10, 2008 02:55PM EST

I bought a Iphone 3G a couple weeks ago. While it truely is an amazing design, I have found some important limitations that would of affected my purchase decision if i knew in advance. 1) There is a echo problem with conversations using the iphone 3G and many car manufacturers hands free bluetooth when making or taking calls, including BMW and Infiniti, which makes it basically unusable and you have to use a seperate wireless headset. No word from Apple yet on a fix. The pre-3G Iphone didn't have this problem. 2) You cannot send pictures or other multimedia content via text messaging like I have with every other phone I've ever used before last one being a motorola razr and tmobile service. You have to send it via email to the Iphone or if it is sent via text message, you have to login to some AT&T website to view the picture or video and most of the time, the site doesn't work even from a computer. I have never been able to reach the website from my phone and I get server timeout messages no matter how good the signal. For people who send or receive a lot of picture messages from phones, this is a major hassle. Its getting to the point that I'm discovering new limitations of the Iphone every week. The 3G feels like a product that was rushed to market before all the bugs were fixed. It has a nice interface and the touch screen is wonderful, but I'm seriously considering returning it and waiting to see if the RIM touch screen phone coming out very soon is superior. I don't think its going to be hard for RIM to take market share away from the Iphone if Apple doesn't address many of these basic problems. My sugggestion would be anyone considering the Iphone 3G, to check out the apple support website first to see the issues being posted would be a problem for you.

Dale
Dale - Monday November 10, 2008 02:59PM EST

I know that Jobs likes to keep his product line small and simple, but in regard to the iPhone, it's not working for me. I planned to get one when the new version came out, but once I started checking it out, I was astounded by the massive design shortcomings. Jobs is an arrogant know-it-all of the "my way or the highway" variety, so he is sure the iPhone is exactly what everyone needs, but I absolutely do not need a virtual, thumb-activated touchscreen. I would rather use tin cans connected by a string. I also need reliable connectivity, which clearly has not happened with the iPhone, making it more of a hobbyists' gadget than a real tool. I doubt Jobs will speak to my needs until he starts addressing the generation that made him rich in the first place. I liked my Apple II+ better than I like the iPhone.

Anthony
Anthony - Monday November 10, 2008 03:09PM EST

i had an iPhone 3G for about a week and in this time, it froze up on me because of text messages, internet websites and music. i go so aggrevated that i took it back and went back to my old blackberry curve that i have never had a problem with. and when the new blackberrry comes out i will buy it, because i know that RIM has all its bugs fixed before they bring out the phone, and if they dont they always wait it off. Apple just brings phones out earlier cuz they want to make a profit and not make sure they are right.

Harold
Harold - Monday November 10, 2008 03:22PM EST

Hold on to your pants everyone. The stock market is about to take off. There's to much good news for the market to keep going down. LOL And then the wolf said. ""I'll huff and I'll puff and I'll blowwww your house down". LOL.

TOML
TOML - Monday November 10, 2008 03:23PM EST

There really isn't anything that Aapl does better than anyone else except packaging and managing consumers perceptions. Their marketing department is very good. Products? Not the best.

Gary
Gary - Monday November 10, 2008 03:26PM EST

The Blackberry Bold has a much smaller screen than the iPhone and can only do half of the functionality of the iPhone. But you don't have to believe me. Go to your local wireless stores and demo the phones for yourself. You will see that the iPhone can do so much more than the Blackberry. (FYI: I am a former Blackberry owner and current iPhone user, and I do not own stock in either companies. I do, however, own stock in AT&T, which sells both phones)

M
M - Monday November 10, 2008 03:27PM EST

I've had the iPhone for about 3 months, and I have to say coming from Windows Mobile which had it's flaws, kills the iPhone with options and usability! I can't get my contacts off the iPhone b/c it will wipe everything, the HD on the computer I initially synched it with, so I'm screwed! and that's for all my PIM, copy and paste doesn't exist and it has alot of shortcumings and flaws that they deny or disagree. Three of the guys that I know that had the iPhone 3G all gor rid of theirs and exchanged for BlackBerries, they will never go back to Apple for phones.

Yahoo! Finance User
Yahoo! Finance User - Monday November 10, 2008 03:29PM EST

Another Mac Zealot. I'll take a choice of BB's rather than just one iphone. I have a MacBook Pro for work and while it is great, I am going to buy another PC for home which I rather not do but can't see paying $2500 for the equivalent hardware of a $300 PC.

Every Night Diner
Every Night Diner - Monday November 10, 2008 03:30PM EST

I love my Iphone, but have to admit that there are a couple of limitations that are more than irritating. Biggest one being that you cannot tether your laptop to the phone for internet access. I did not realize this and just make the fatal assumption that the Iphone would do it. I have read where you can hack the phone to accomplish this, but I don't want to get into that arena. Very disappointing.

Jonathan
Jonathan - Monday November 10, 2008 03:36PM EST

Well, the iPhone is getting kinda messed up cuz I have that and an Blackberry Pearl. To me, well, "Apple" is probably havin tecnical difficulties cuz iPhone takes up time on safari to load, but since I just got the Blackberry, it doesn't take up any of my time on the go.

Yahoo! Finance User
Yahoo! Finance User - Monday November 10, 2008 03:39PM EST

Apple sells GIMMICKS. There is nothing that an i-phone has that any other phone does. Same with the ipod ... they are awesome marketers, not retailers. They have convinced you that you are buying a superior product. not so. you are buying superior marketing and image branding. just like AOL in the early 90's.

blumkin
blumkin - Monday November 10, 2008 03:45PM EST

Its called the Blackberry Storm and it comes out late November/Early December. Its a touch screen and from what I read it feels like your pushing keys instead of a screen. It will also be able to DL all the fun apps the iphone does, plus it will have some more savy business features and it will only be offered by verizon a very reliable network. It will be better than the iphone until they come out with their new model, than blackberry will update theirs and the vicious cycle will continue

b s
b s - Monday November 10, 2008 03:51PM EST

Wasn't the Razr the best selling phone a few years ago. No one is talking about that anymore. Iphones competitors will quickly catch up and compete with price.

Yahoo! Finance User
Yahoo! Finance User - Monday November 10, 2008 03:55PM EST

I bought a $300 computer and it worked like a $300 computer. It was incredibly slow and the amount of mysterious error messages generated were overwhelming. Then I read on PC Magazine that the Macintosh laptop was the fastest at running Windows of any computer they tested, other than gaming, specially built computers. I bought it, and it's true. It runs Windows XP flawlessly, starts up in seconds, so to the user who says he can't see spending $2500 for the same hardware you get in a $300 computer, you need to do some more research

Allan W
Allan W - Monday November 10, 2008 04:00PM EST

Bought iPhone2 when it came out 7/11/08. Great step forward, but returned it because as a computer it did not have cut/copy and paste, and as a phone it did not have voice dial, necessary when on the road a lot. A couple long delayed kludgy "voice lookup" software apps would bring up the closest "address card" but required eyes and hands off driving to choose which number/contact to dial. Even if it gave great back massages, it did not meet the most basic phone/computer goals. I look forward to trying/buying iPhonev3 4G ... but this one is beautiful, kool, but premature. I own stock in both RIMM and AAPL, (sob)

Yahoo! Finance User
Yahoo! Finance User - Monday November 10, 2008 04:03PM EST

In response to the apple beating out the $300 computer ? What did you personally compare it to ? A $600 dell ? Throw that macintrash next to a real notebook and then see what you get. Any $1000 PC notebook is just as good as a macintrash. what do you get for that extra $1500 ? LO a lighter wallet and less programs. razr was the best selling phone because it was everything everyone wanted. They the media convinced you that you needed an i-phone. please. people need to stop being so stupid.

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