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Analyst Charles Wolf from US firm Needham & Co has said that both companies face huge challenges as iPhone begins to win the "hearts and minds in the consumer and enterprise space".
"The iPhone is a game changer, weaving together a wide array of computer-like functions," he explained. "Given the choice between a BlackBerry and iPhone, we believe a material percentage of consumers will opt for the iPhone once exciting applications for the phone begin to proliferate in the second half of the year. BlackBerry sales should continue to grow but at a materially slower rate than they would have in the absence of the iPhone", noted Wolf.
As for Palm, Wolf said it faced the deepest challenge and that the company had "lost its way."
