When Apple announced news of its iPhone in January, many investors believed that it would eat into the market share of cell phone makers Nokia ( NOK), Motorola ( MOT) and RIM. iPhone, which offers a touch screen instead of a keyboard and combines iPod features with those of a phone, is expected to launch toward the end of June. Some analysts believe that it could take up to two years to sort out any kinks in the iPhone and for wide consumer adoption of the device. Also, the iPhone's multimedia features are likely to appeal more to consumers rather than to business users. And that could mean that companies such as Motorola and Nokia, which have a greater stake in the consumer market, will feel the effects more than RIM, whose customers are largely businesses. Additionally, to its credit, RIM has started moving into the consumer market with the
launch of its Pearl handset . Meanwhile, one old guard, Motorola, had been distracted because of a struggle with Carl Icahn for a boardroom seat , in which the investor came up short. "People are realizing RIM's competitive advantage is likely to last for a longer period of time than they had thought," says Abramsky. "Clearly, RIM is best positioned within its group for growth."