Apple Boosts iPhone's Ability To Fight BlackBerrys

Challenging the BlackBerry's dominance, Apple will make it easier for business customers to use the iPhone by adding features such as the ability to get work e-mail, contacts and appointments through the company's licensing of Microsoft's ActiveSync protocol.

Apple made the announcement of a more business-friendly iPhone Thursday at an event in which it also previewed software for outside developers to create applications for the popular device. In addition, venture capital firm Kleiner Perkins Caufield & Byers unveiled plans for a $100 million fund to invest in companies developing applications and services for the iPhone.

The final version of the iPhone's new software including both the new business-oriented features and the software development kit is set to be released in June.

Until now, iPhone users have had to overcome significant technical hurdles just to retrieve business e-mail. But through the ActiveSync license, iPhone users gain access to the Microsoft Exchange server to more easily get push e-mail and contacts. That opens the door to the iPhone taking on Research in Motion's BlackBerry as the smartphone of choice for business users.

Currently, the BlackBerry has nearly three-quarters of the corporate smartphone market, compared to only 5% for the iPhone, according to mobile market researcher ChangeWave. But the iPhone had the highest customer satisfaction ratings among business customers, with 59% "very satisfied" compared to 47% for the BlackBerry.

"This should help Apple make inroads on RIM's hold on the enterprise market," said Greg Sterling, senior analyst at Local Mobile Search, a unit of Opus Research.

Separately, Apple's launch of software development tools for the iPhone follows similar moves by competitors to help open up the mobile landscape. Google last year joined with a group of wireless networks and device makers to create a mobile operating system that is open to outside developers. Nokia has also taken steps to encourage application development for its handsets.

Kleiner Perkins' "iFund" for iPhone developers will give Apple's effort a big boost. "We think several significant new companies will emerge as this new platform evolves, and the iFund will empower them to realize their full potential," said Kleiner Perkins partner John Doerr, in a statement.

Google in November announced it would offer a total of $10 million in prize money to software developers who build applications for its new Android operating system.

Apple also said the latest version of the iPhone software would include an App Store--an application that lets users browse, search, buy and wirelessly download third-party apps directly onto their iPhone or iPod Touch. Developers set the price and keep 70% of each sale. But they also have to agree to distribute their apps exclusively on the iPhone.

What happens to developers who balk at that restriction? "Then they won't get their application on the iPhone," said Apple co-founder and CEO Steve Jobs, according to a report on CNET's News.com site.

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