Analysts Predict How the iPhone Will Affect the Smartphone Market

The Apple iPhone will debut at 6:00 pm on Friday, and many are saying this will be a watershed event in the smartphone market.

When asked how this combination phone and iPod will affect sales of current models, T. Michael Walkley, wireless hardware analyst for Piper Jaffray, said that he believes Palm, Inc. will be the company most affected by the iPhone, as it doesn't have a new, compelling Treo to compete.

However, Walkley doesn't appear to think the iPhone's debut will have a significant effect on Palm, as he continues to rate Palm shares at “Market Perform.”

What About RIM?

Both Walkley and UBS Investment Research analyst Maynard Um predict that RIM won't be hurt by the iPhone, at least on the short term, as its sales are being buoyed up by the recent launch of the BlackBerry Curve.

Like the iPhone, the Curve is a consumer-oriented device with multimedia capabilities offered by AT&T, and Walkley believes many of those who go into stores to look at an iPhone will go home with a BlackBerry.

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Via Barron's Online