Apple's iPhone eats into Blackberry's business market share

SAN FRANCISCO (Reuters) - Apple Inc's new iPhone, already racking up blockbuster sales with consumers, appears to be making small but steady inroads into the coveted U.S. corporate market dominated by Research in Motion Ltd's BlackBerry.

While most companies are unwilling to abandon their trusted BlackBerries, analysts say a grassroots movement may be taking place among employees -- particularly at small and mid-size companies -- who have bought their own iPhone and are convincing their employers to support it.

"I see very few companies turning off BlackBerries," said Jack Gold, founder of research firm J.Gold Associates. "I see more companies turning on support for the iPhone."

Gold estimates at least 15 to 20 percent of people who buy the iPhone are going to use it for business reasons. "Those are people who have gone out and bought these things and have taken it to a company and said 'make it work,' or have made it work somehow," he said.

Apple sold 6.9 million units of its new 3G iPhone in the September quarter, versus 6.1 million BlackBerries. Although iPhone sales are widely expected to be hurt by the economic downturn, the gadget's fast start had the industry buzzing.

Apple fired its opening salvo in the battle for the enterprise market last March, when it announced that the 3G iPhone would feature Microsoft Corp's Exchange for corporate e-mail and other new security standards.

At the time, big names like Genentech Inc, Nike Inc and Walt Disney Co announced they would support the iPhone. Genentech said it would deploy 3,000 to employees.

Still, no one doubts that the BlackBerry continues to own the enterprise space. Apple will have a tough time cracking industries such as finance and government, which have higher email security requirements, analysts say.

And Apple may view the enterprise market as simply icing on the cake of its consumer success. The time, effort and money required to satisfy corporate customers may not be something Apple is interested in.

Of course, RIM is making its own push in the opposite direction. Its as-yet-unreleased touch-screen Storm smartphone is a play for the consumer market.

IPHONE TARGETS BLACKBERRY'S TURF

Surveys of IT managers typically give RIM 70 to 80 percent of the enterprise market, and Apple 10 to 15 percent. But some analysts say this just measures corporate smartphone purchases. When measured by enterprise "email seats," or accounts, the iPhone is showing some traction.

"IT managers rarely make top-down decisions on new technologies, which often enter from the side or the bottom, and the iPhone will probably come along those same routes," said Cowen & Co analyst Matthew Hoffman, adding that Apple's progress is happening somewhat below the radar.

He said the iPhone's powerful Web browser shouldn't be overlooked for its appeal to business people on the road.

Michelle Wilcove, who works in sales for Bluewolf Inc, a "cloud" computing consulting firm, bought her own iPhone because she prefers its user interface.

She estimates around 25 percent of her company's 200 employees are using iPhones, saying, "it's growing fast."

Ken Dulaney, vice president of mobile computing at research group Gartner Inc, expects the iPhone to double its share of the enterprise wireless email market in a year.

"I think they're having a lot of luck getting into the enterprise, although still to a limited extent," he said.

IDC senior analyst Ryan Reith sees a "slow-moving" trend toward the iPhone with small and medium-sized companies. But he notes that large companies will buy few, if any, iPhones for employees as they are unlikely to scrap long-standing security standards and purchasing networks any time soon.

Nonetheless, Reith said, "It's inevitable that Apple will move into the enterprise space."

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Price of milk on internet down 41 per cent

The price of whole milk powder in Fonterra's latest internet auction has dropped more than a third since July.

The co-operative is the world's biggest dairy exporter and launched its internet-based sales auction called globalDairyTrade in July to set a global reference point for dairy products and try to keep up with volatile markets.

The average price in Fonterra's fifth trading event yesterday for whole milk powder across all products and contract periods was US$2586 a tonne - 11.4 per cent down on the previous auction a month ago and 41 per cent down on the first sale in July.

The ANZ Commodity Price Index for dairy products rose for 15 consecutive months to peak at 291.9 in November last year - more than double what it was in August 2006.

But since then the index has fallen. It dropped 9.9 per cent in October to be down 34.7 per cent compared to last year's peak. Historical trends suggest it could drop by 50 per cent in total.

Fonterra commercial director GlobalTrade Guy Roper said the credit crisis was prompting customers and consumers to hold off making major purchases of most commodity products, including dairy.

"The price decline is consistent with the limited demand we are seeing for a range of other dairy products, such as skim milk powder and casein, in the near-term out to three months," Roper said.

During the online sale, customers make volume bids for different specifications of product and delivery times and after a number of bidding rounds the price is adjusted to match demand.

"Buyers appear to have greater needs over the medium term and were prepared to secure supply at prices above the 3-month, or spot price, during the trading event."

The fall in the whole milk powder price mirrored the drop in other commodity markets with the Chicago Mercantile Exchange futures prices for corn and soybean oil down 50 per cent since July, Fonterra said.

The co-operative had revenue of $19.5 billion for the 14 months ending July 31 and expected to sell about $1 billion worth of milk powder in the first year of the internet-based sales system.

Information from internet sales helped Fonterra manage its contract book.

A negotiated contract system could not react as fast as the dramatic changes seen in the dairy market and Fonterra had not been able to take full advantage of the peak of the pricing.

However, a report by Rabobank said a growing world consumption of dairy products, combined with reducing growth in supply, was expected to underpin sustained higher but volatile prices into the future.

The medium to long-term outlook was robust, despite short-term challenges including the recent moderation in commodity prices.

"Rabobank remains convinced that the medium-term equilibrium price for dairy products has shifted upwards from its long-term average."

Global demand for dairy was likely to remain below trend level through the first half of next year, assuming continued weak economic conditions, Rabobank said.

However, a turnaround was expected later in 2009 because of eventual improvement in the global economy, increased consumer demand due to more competitive pricing and demographic and cultural trends favourable to dairy consumption.

DOWN BUT NOT OUT

* Dairy exports accounted for 27 per cent of national exports in the year to May.
* Fonterra's internet sales price for whole milk powder is down 41 per cent since July.
* ANZ Commodity Price Index for dairy products is down 34.7 per cent since peaking in November.

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Mobile abuse among youngsters

Now-a-days people cannot think without mobile communications even a moment. Mobile companies (multionational) are booming their business in Bangladesh. Update mobile tecnologies come one after another. But mobile companies have been adopting some detrimental business strategies to attract youngsters. Mobile phone, a wireless ultra mordern technology, has brought about a radical change in our information and communication systems in Bangladesh. A person can enjoy internet, audio, video, MP3 player, clock, games, light directions memory, recording, video, picture and so many multipurpose systems in a mobile phone.

But it is matter of great regret that millions of youngsters are attracted in several misuses of mobile phone. They are killing their valuable times ignoring classes of school, colleges or home work by listening MP3 at a high volume in a body besides roads, beneath the trees, in shopping malls or elsewhere. The numbers are increasing day by day. Frequently, mobile companies appear with new dimensional facilities, which are lucrative for the teens. Our guardians, more or less, are not aware lf their use of mobile phone. Even a section of school or college going student has become addicted in pornography gaming through mobile phone. In the video mobile, they collect various nude pictures and sometimes they never hesitate to send to another video mobile. Such notorious and unethical activities go unabated to the guardians much worries. Mean while, the usage of MP3 players in mobile phone has become another concern. In the society, children and teenagers should be protected from high sound level. Because the usage of MP3 players at a high volume for a period of more than 5 hours a week can lead to permanent hearing loss for them. So, this alarming trend of cell phone abuse should be prevented. Guardians, teachers, law enforcing agencies and mobile companies should come forward to create awareness about the good and bad sides of using mobile phone. We hope that the latest cell phone service will bring the blessing, not cause.