Apple Throws Down the Gauntlet

As he unveiled the new, 3G version of the iPhone yesterday, Apple (AAPL) chief executive Steve Jobs took dead aim at two major competitors, and launched a preemptive strike at a third.

By integrating the Microsoft (MSFT) Exchange "push" email service into the iPhone, Apple is launching a direct attack on Research in Motion's (RIMM) BlackBerry smart-phones, which until now have had a near lock on the enterprise market. Jobs said Cisco (CSCO) would be providing added security for enterprise customers, and added that 35 percent of the Fortune 500 are now testing the iPhone.

These moves should go a long way toward convincing nervous IT managers that the iPhone is a viable alternative to the BlackBerry for enterprise uses -- as well as turn up the pressure on Research in Motion to prove why companies should stick with the BlackBerry.

Apple is also aiming at Microsoft itself, with the unveiling of the new MobileMe Web service, which the company described as "Exchange for the rest of us." MobileMe, which replaces the .Mac service, allows users to store their data online and sync with iPhones, Macs, and PC's.

MobileMe service is available for $99 per year for 20 gigabytes of storage.

Finally, by emphasizing third-party applications, which developers can create for the iPhone using Apple's Software Developer Kit [SDK], the company is anticipating Google's (GOOG) forthcoming Android mobile phone operating system, which the search giant has opened up to its own stable of third-party developers.

Apple clearly hopes to deflate Google's emphasis on third-party applications, as well as siphon off the efforts of software developers.

Steve Jobs has thrown down the gauntlet. Now it's up to RIM, Microsoft and Google to respond.

Comments

[tom1234]

now that is the WIZZZard at his best ----thank yo mr. jobs

[mollytjm]

thank you for the great article...i played the demo videos on the apple website..awesome!!

[Muddling Investor]

Kind of lame if you look at it more thoroughly. I mean, technical part is great, as usual. But business part... No revenue sharing, activation in store. That means, no extra sales to unlockers, no extra money. I wonder... I am long Apple since 1999, but started to think of reducing my position lately. See my blog if interested in details: muddlinginvestor.blogs...

[User 186090]

Actually not every country has the same deal as ATT. Some countries will have revenue sharing and there will be less demand for unlocked phones since they'll be available in far more countries. Taking some profits is never a bad idea with any stock but with AAPL i'd keep a lion's portion.T