iPhone Business Adoption Highly Unlikely

Implications: Security issues + poor keyboard form factor + lack of Exchange 2003 compatibility + high cost all equate to lack of adoption by businesses as RIM replacement.

Analysis: The iPhone is a tremendously popular and versatile consumer device.  Making the jump from consumer phone, MP3 player and web surfing novelty device to business critical implement is a nearly impossible leap which neither the iPhone nor Steve Jobs will achieve in the next 12 months.  Furthermore, the iPhone in its current form factor will never capture any significant business mobile device market share from RIM.  First, the iPhone's incompatibility with Exchange 2003 is debilitating toward adoption.  While it can work with Exchange 2007, fewer enterprises have made that upgrade.  Until then no IT administrator or CIO will approve its use.  Second, the iPhone lacks a remote kill command which the BlackBerry Enterprise Server includes.  Should a user lose the device, a kill command can lock and wipe the device.  The centralized kill command is a huge benefit to organizations which highly value security and information assets, included in which are government entities, financial service firms, legal and others - primary adopters of RIM.  Third, the device itself is not made for frequent email use.  Try to create an email on an iPhone's virtual keyboard and you will want to pull your hair out.  Email is a primary communication element for business and iPhone misses the mark.  While you can use it hunting and pecking with an index finger, the RIM form factor revolutionized the use of an opposable thumb.  Anything less, including the iPhone's virtual keyboard, seems primitive.  Finally is the cost.  The iPhone is a much more expensive device compared to the BlackBerry and without an enterprise sales force or ability to offer volume discounts, iPhone will remain a great consumer device which will not cross over to the business market.