RIM Run-Up Rebuffs iPhone Debut

Updated from 2:54 p.m. EDT

iPhone-mania hasn't dampened enthusiasm for shares of BlackBerry maker Research in Motion (RIMM Quote).

RIM closed Monday at $214.26, up $14.27, or 7.1%, despite estimates that consumers snapped up more than 500,000 of Apple's (AAPL Quote) iPhones over the weekend.

RIM's stock flirted with the $200 mark on Friday, rising nearly 21% in the first day of trading after reporting its first-quarter earnings and issuing bullish third-quarter guidance.

RIM co-CEO Jim Balsillie said he expects the iPhone to raise interest in the so-called smartphone category of cell phones. RIM's success, however, has more to do with its competitively priced phones, continued dominance of mobile email and sleek new designs. The company's savvy product development has expanded its user base into the consumer market and beyond hardcore business types craving instant email from any location.

"Investors are getting more confident that RIM has the business acumen to compete with the consumer-electronics giants," says Tony Carbone, an analyst with mutual fund manager RCM Capital, which holds RIM shares in its mutual funds and separately managed accounts.

In addition to its core email and text messaging capabilities, RIM has added consumer-oriented features like an MP3 music player, phone camera and GPS to its BlackBerrys. It packaged the BlackBerry in a smaller case by trimming the size of the keyboard and using single chipsets that handle multiple functions.