BlackBerry Bold vs. Apple iPhone: Two Very Different Experiences

by: FP Trading Desk August 24, 2008 | about stocks: AAPL / RIMM    

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Comparing the BlackBerry Bold and iPhone is misguided because Research In Motion Ltd.’s (RIMM) 3G smartphone is targeted at upgraders, professional consumers and business users, while Apple Inc.’s (AAPL) popular device focuses on media-centric consumers. It’s kind of like comparing steak and lobster, RBC Capital Markets analyst Mike Abramsky told clients. They’re both tasty, but offer completely different experiences.

He said:

For productivity-centric buyers, the Bold may be preferable to iPhone, whose touchscreen may deter frequent email users.

He added that the Bold should also offer superior, IT-approved work e-mail integration.

In terms of pricing, the analyst said the cost of the Bold in North America is acceptable for healthy uptake. While the iPhone goes for C$199, the BlackBerry Bold is priced at C$399 from Rogers Communications Inc. (RCI) and a yet-to-be determined amount at AT&T (T). Mr. Abramsky expects RIM’s touchscreen Thunder will be unveiled in September with a launch in October and it will cost the same or less than the iPhone.

With the global smartphone market estimated to grow from 100 million users today to 400 million by 2010, it appears that there will be enough customers to go around for both Apple and RIM. Pitting them against each other misses the real opportunity, which is to take market share from incumbents like Motorola Inc. and Nokia Oyj, the analyst noted.

He forecasts RIM will grow its market share to 3% in 2009, up from 1% in 2007, while each 1% of the global handset market adds 40% to its revenue and earnings per share.

Mr. Abramsky rates RIM shares at “outperform” with a $165 price target.

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This article has 13 comments:

  •  
    Aug 24 08:38 AM
    The iPhone is about the software...
    Reply | Link to Comment
  •  
    Aug 24 09:18 AM
    I can't quite describe the article as "bull", as AppleFinland did... for the simple reason that the article doesn't say anything!

    "Two very different experiences"? I'm sure they're different, but different where? How?

    There's a brief, blink-and-you'll-miss-... mention of different targets users, without any further explanation, and an oblique comment on "superior" email in the BB, without any detail. And... that's it.

    To the author: Was the actual meat of the article dropped somehow? Because I'm looking at some parsley and a slice of lemon, with nothing else on the plate.
    Reply | Link to Comment
  •  
    Aug 24 10:13 AM
    Since this comes from a Canadian outfit, I admire your patriotism.

    That's about all the positives I can think of.
    Reply | Link to Comment
  •  
    Aug 24 11:33 AM
    BB = yesterday's technology in different package
    iPhone= today's and future technology with huge potential

    Let's face it; RIM is in for the fight of its life. Not just from Apple; but from all the other smartphones that are leaving it in the dust.
    Reply | Link to Comment
  •  
    Aug 24 11:51 AM
    Let me know where you all saw and used the Bold to justify your observations and comments to vilify a product from a company with larger market share and equal potential for growth than your snappy u tube player.
    Reply | Link to Comment
  •  
    Aug 24 01:06 PM
    Absolute rubbish - this is just THE biggest excuse for a poor new product from RIM.

    They have had two years to take on the iPhone and this is the best they can do? There is little or no difference to it's previous offerings and I don't see them getting any new traction from this device.

    One reviewer says it can't even view graphs made from tables in Word.. so much for satisfying the businessman.

    And surely everyone needs full html email? No the Bold delivers a reworked version of html, throwing away all the hard work put into creating the original.

    Forget it.
    Reply | Link to Comment
  •  
    Aug 24 01:09 PM
    RIMM must spend a lot of time worrying about Apple. they know all too well that whatever will make the iphone more consumer/ business friendly, is on the way, if it isn't already included. it's a different experience, for sure. one is old tech and one is innovation and high customer satisfaction. we all know what company is what.
    Reply | Link to Comment
  •  
    Aug 24 05:23 PM
    This article was basically nothing but sales forecast data for RIM. Where is the article regarding two very different experiences? Is the author implying that mentioning email and IT approved device the "experience" he or she is talking about? This article seems to be nothing more than an ad for RIM. A bad one at that.
    Reply | Link to Comment
  •  
    Aug 24 07:39 PM
    RIMM may do OK for a while. Many business people just use email and the IT people already have this worked out so momentum and lethargy may work for RIMM. However, down the road the iPhone will hit them like a tsunami. One by one the capabilities of the iPhone will mount up till RIMM is totally buried.
    Reply | Link to Comment
  •  
    Aug 24 09:56 PM
    Bold is a pathetic rework of the relic blackberry.

    iPhone is the ultimate internet tablet computer, with a great phone, ultimate iPod, great web browser/email, and a growing collection of applications which the blackberries will not be able to rival.

    IT approved email? That's ridiculous, the iPhone has better support for monopoly email (microsoft outlook/exchange push email) than blackberrry. All your blackberry email has to do through RIM servers. iPhone works directly with your exchange server.

    RIM could grow for a while, who knows, but I don't expect they can keep up very long. Tactlie keyboard is good for email, but iPod on screen keyboard is very slick as well, and doesn't take long to adopt.
    Reply | Link to Comment
  •  
    Aug 25 10:24 AM
    ipod is just a nice toy...investors have voted and RIMM is up 60%+ in the past 12 months while apple only 40%+. Apple freaks just CAN'T stand a single word of criticism
    Reply | Link to Comment
  •  
    Aug 25 03:20 PM
    I get this article. I've been saying this too. The phones are not comparable on the same scale. There target markets are different and while there are competitors, thats hardly to say one is better than the other. RIMM did a bad job at launching the Bold, but investors are still confident in this stock (www.predictwallstreet....). With RIMM, its mostly about timing.
    Reply | Link to Comment
  •  
    Aug 25 10:51 PM
    Seems pretty expensive but if the market will bear it, go for it!
    Reply | Link to Comment
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