Let the 3G-Phone War Begin

05/12/08 - 02:05 PM EDT

Priya Ganapati

So far, RIM and Apple, though playing on the same turf, have managed to skirt direct competition. Apple's iPhone has been seen as a device targeted at consumers who want their music and a sleek phone in a single package, while the BlackBerry has been a staple of business users.

But the two companies are increasingly likely to run head-to-head in the future, says Chervitz. "They both offer premium priced products that appeal to a certain segment of buyers."

Adam O'Donnell who works as director of emerging technologies with an information security company is likely to be one of the buyers that both Apple and BlackBerry will be vying for.

O'Donnell currently owns a Motorola(MOT Quote - Cramer on MOT - Stock Picks) Razor phone but says he will be standing in line for the 3G iPhone when it releases.

Usability, interoperability with his laptop and design are what draws him to the iPhone, says O'Donnell who already uses a Mac laptop.

"I want something that is more than just mobile e-mail," he says. "My business and personal life don't have a really fine delineation so having tools that are optimized for one or the other isn't appealing to me."

The BlackBerry Bold, while interesting, doesn't impress O'Donnell. "The iPhone software is being continually upgraded without upgrading the device," he says. "You really can't say the same for the BlackBerry at this time."

Getting someone like O'Donnell to switch sides will be RIM's challenge as it prepares to roll out its latest phone.

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