The iPhone Doesn't Ring With Business

But it may not be enough for enterprises and it does not rival what Apple's competitors are offering.

Security on the iPhone remains a key concern for IT managers. Businesses need to make sure that their users do not leave unencrypted information on their devices, which could cause problems if there were a data breach or the loss or theft of a device.

The iPhone can't encrypt data when it is in transit unlike RIM's BlackBerry, which encrypts information transmitted between the devices and the server. Microsoft's Windows Mobile also offers similar encryption capabilities.

Despite the popular design of Mac desktops and notebooks and the "cool" factor surrounding the devices, Apple hasn't made a significant dent among business users, who have preferred to use Microsoft's Windows operating system-based PCs.

"Apple has only been able to capture islands within the enterprise such as senior executives or creative functions in enterprises," says Barry Jaruzelski, vice president and lead marketing officer at Booz & Company.

With the iPhone, Apple has a shot at becoming more than just a niche player and getting business users to sign on will be its biggest challenge. "If you need to have a large and expanded customer base, you need to expand into corporations," says Jaruzelski. "That's where the money eventually is for high-end smartphones and it's the logical place to go."

Displacing RIM from its perch as the market leader, though, won't be easy. "The installed base and functional loyalty of BlackBerry users is pretty significant," says Jaruzelski. "Changing the behavior pattern and the IT investments in current mobile devices is not trivial. Enterprises will have to consider the total cost of ownership while making a decision to switch."