MONTREAL - The BlackBerry vs. iPhone competition is getting a lot more personal with Research In Motion's chief executive taking a slice out of Apple's criticism of the Canadian smartphone maker.
Apple CEO Steve Jobs bragged Monday his company sold more iPhones than Research In Motion (TSX:RIM) sold BlackBerrys in the most recent financial quarter. He also predicted that RIM would not be able to catch up with Apple in the "foreseeable future."
That prompted Research In Motion's co-CEO Jim Balsillie to issue a lengthy statement on Tuesday, saying that Jobs gave only "half a story."
"We think many customers are getting tired of being told what to think by Apple," Balsillie said.
He said the higher sales of Apple's iPhones don't add up because RIM's second fiscal quarter ended Aug. 28, while Apple's quarter was over at the end of September.
Balsillie said demand is typically stronger in September than in the summer months.
RIM (TSX:RIM) had record shipments for five consecutive quarters and it would ship between 13.8 million and 14.4 million devices in its current quarter, Balsillie noted.
"As usual, whether the subject is antennas, Flash or shipments, there is more to the story and sooner or later, even people inside the distortion field will begin to resent being told half a story," Balsillie said.
Apple has had some problems with the antennas on its iPhone 4, which can lose reception when held in a certain way. It has also been criticized for refusing to use Adobe Flash support for video and interactive material on the web.
Balsillie also took on Jobs' criticism of tablet computers with smaller, seven-inch screens, like RIM's new PlayBook, which is geared toward business users, and will use Adobe Flash.
"For those of us who live outside Apple's distortion field, we know that seven-inch tablets will actually be a big portion of the market and we know that Adobe Flash support actually matters to customers who want a real web experience."
Jobs said the smaller tablets would be "dead on arrival." Apple's iPad has a 10-inch screen.
Analyst Tero Kuittinen said Jobs' comments were unusual and "not "very gracious."
"Usually CEOs don't go that far in assessing upcoming rival products," said Kuittinen, with MKM Partners in New York.
"You don't often say that rival products are going to be 'dead on arrival."'
Despite the feud, analysts say Research In Motion may be headed toward a different, more international marketplace.
"It could have a viable future as a growth company that really focuses on affordable smartphones, affordable messaging devices," Kuittinen said.
"The fate of Research In Motion really hinges on how well they now do in Asia, Latin America and the Middle East."
Wunderlich Securities analyst Matthew Robison said RIM may end up having a broader appeal.
"I think the important thing for RIM, and the way they're getting situated now, is as a mid-range smartphone that is still very good at basic communications functions," Robison said from San Francisco.
IDC analyst Kevin Restivo said RIM's lower cost BlackBerrys with $15 plans that have email and social networking are popular in developing markets.
"RIM's lower-cost models, I think it's fair to say, are really what's driving growth in the emerging markets," said Restivo, senior research analyst at IDC's worldwide mobile phone tracker unit.
Shares in Research In Motion closed down 43 cents at $48.82 on Tuesday on the Toronto Stock Exchange.
The smartphone war is getting personal with Research In Motion's chief executive taking a slice out of Apple's criticism of the Waterloo-based BlackBerry maker.
Apple boss Steve Jobs bragged Monday his company has sold more i-Phones than RIM has sold BlackBerrys in the most recent financial quarter.
That prompted RIM co-CEO Jim Balsillie to issue a lengthy statement yesterday, saying the higher i-Phone sales don't add up because RIM's second quarter ended August 28th, while Apple's quarter was over at the end of September.
Balsillie says RIM thinks many consumers are getting tired of being told what to think by Apple.
