BlackBerry can handle a Verizon iPhone

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- BlackBerry maker Research in Motion continues to command the largest smartphone market share, and it's likely to hold a leading position even if the rumor that Apple is developing an iPhone to run on the Verizon Wireless network proves true.

Shares of RIM (RIMM) slipped almost 1.3% Tuesday on the Verizon iPhone speculation, but analysts maintained upbeat views of the Canadian company, noting that RIM and Apple (AAPL, Fortune 500) can both continue to gain market share.

While the iPhone attracts users interested in a multimedia experience and web surfing, the BlackBerry targets customers focused on messaging and enterprise.

"Ultimately with just 6% combined share of the cellphone market, both RIM and Apple have enough headroom to grow and prosper," said Bank of America research analyst Vivek Arya in a research note.

By converting more users from feature phones to smartphones or luring in dissatisfied AT&T iPhone users, Arya added that an iPhone on the CDMA carrier could just expand Verizon's smartphone pie, rather than cutting into RIM's slice at Verizon.

And last quarter, when Verizon (VZ, Fortune 500) promoted Motorola's (MOT, Fortune 500) Droid smartphone that runs Google's (GOOG, Fortune 500) Android platform, RIM still managed to ship a record 3.3 million BlackBerry devices to the carrier, 30% more than a year earlier. It also maintained strong sales at Sprint (S, Fortune 500).

According to a recent report from technology data tracker comScore, RIM dominates 43% of the U.S. smartphone space and its share is growing at a faster pace than Apple's 25%.

RIM also boasts a competitive edge in international markets. The company's shipments outside of the United States and Canada soared 80% in 2009 from a year earlier, accounting for almost a third of total shipments.

Despite the robust growth, RIM only holds 9% of international market share, leaving plenty of room to grow, said Arya.

RIM is expected to report fiscal fourth-quarter earnings Wednesday after the market closes.

Analysts polled by Thomson Reuters expect the company's earnings will surge 42% to $1.28 per share. Revenue is expected to climb 24% to $4.3 billion from a year earlier.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,810.06 91.06 0.51%
Nasdaq 4,712.97 11.10 0.24%
S&P 500 2,063.50 10.75 0.52%
Treasuries 2.32 -0.02 -0.86%
Data as of 1:19am ET
Company Price Change % Change
Bank of America Corp... 17.12 0.12 0.71%
Kinder Morgan Inc 39.75 -0.17 -0.43%
Apple Inc 116.47 0.16 0.14%
Intel Corp 35.59 -0.36 -1.00%
Microsoft Corp 47.98 -0.72 -1.48%
Data as of Nov 21

Sections

This arrangement, announced Friday, illustrates how the lines have blurred between traditional TV networks and newfangled options like Netflix. More

The Obama administration is touting that its immigration action will boost wages. But the hike amounts to only $170 a year by 2024. More

Obama doesn't have the authority to create a startup visa, but part of his reform announcement could include a workaround for entrepreneurs: 'parole status.' More

Nearly half of all Americans say there's a chance they'll have to work during a holiday between Thanksgiving and New Year's, according to a new poll. And one in four say they'll have to work whether they want to or not. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.