Apple''s latest efforts to make the iPhone more attractive to business customers by adding new support for corporate e-mail and information systems has some analysts divided on how much the device will be accepted by the corporate market.

On March 6, Apple unveiled a software development kit, or SDK, for third-party developers to build applications for the iPhone, and support for Microsoft''s Exchange ActiveSync that will give the iPhone features such as push email and other capabilities.

These changes could make the device more competitive with products such as the BlackBerry from Research in Motion, which is enormously popular in the enterprise market.

In a report Monday, Toni Sacconaghi of Bernstein Research called the moves "positive developments" for Apple and the iPhone, but questioned whether the efforts will be enough to help the company reach its goal of selling 10 million iPhones this year, or have much of an impact on the device''s position in the handset market.

Sacconaghi said the SDK is "critical to Apple''s maintaining the iPhone''s [market] positioning," but that it won''t necessarily make the iPhone more attractive to enterprise users.

"We note that many mobile enterprise applications likely to be available on the iPhone (such as Salesforce.com) are already available for other wireless devices," he wrote.

However, Andy Hargreaves, of Pacific Crest Securities, said the iPhone should attract new developers to Apple''s technology platforms, and "will likely be the first Apple device for millions of corporate users, and positive impressions could drive stronger demand for Macs over time."

Hargreaves estimates that the addition of the SDK and ActiveSync support will, over the next year, drive 5 million iPhone sales to corporate customers.

Sacconaghi believes that architectural differences between ActiveSync and the BlackBerry service already "present a barrier for many corporate IT systems." Because of that, Sacconaghi said he doesn''t expect the iPhone to became a standard-issue device at many large corporations. The device is more likely to find a niche with smaller business that will offer support for employees personal iPhones.

He said that the biggest stimulus to iPhone sales will probably be a price cut, or new models with lower prices than current devices.

Hargreaves, on the other hand, believes the iPhone could end up not only succeeding in the enterprise market but lead to a halo effect for Apple''s Macintosh computers similar to the one created by the success of the iPod in the consumer market.

Hargreaves estimates that Apple holds less than 2% of the worldwide share of the corporate PC market, and that improved enterprise support for the iPhone "suggest that [the] Mac could see meaningful growth in the enterprise markets" through Apple''s 2009 fiscal year. Hargreaves said that every 1% gain by the Mac in enterprise markets could add 25 cents to Apple annual per-share earnings, and help make up for slowdowns in the consumer market.

Apple shares fell $1.81, or 1.5%, to $124.75 in afternoon trading Monday.



Source:Dow Jones Newswires

Tags:iPhone