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Blackberry facing stiff competition, share prices drop

Research In Motion are facing a stiff challenge from competitiors with Bank Of America and Citigroup are looking at alternatives for corporate email.

Shares have dropped 3 percent recently as investors worry that the Blackberry smartphone strangehold on corporate communications was being eroded by rival solutions. The banks are testing software designed to make the Apple iPhone secure enough for company messages, according to BloomBerg. Three people are apparently familar with the plan and a source at the Bank of America has confirmed the report.

As many know, Blackberry smartphones have always had a huge percentage of business markets, such as banks, politics and executives who need access to secure email on the move. This is the first time RIM have been pressured in the business sector.

James Cordwell, an analyst in Atlantic Equities said “If the information technology department’s security concerns can be addressed it seems to be a win-win for employers and employees.”

A survey in September found that 83 percent of US businesses allow employess to use personal devices to access corporate email – which helps to lower company costs.

Dell have said it is moving 25,000 Blackberry company executives to its own line of phones, to help boost their standing in the market.

Mark Guibert, RIM senior vice president of corporate marketing said in an email “We find it highly unlikely that they will actually save any money with this move and far more likely they were looking for a little free publicity, plus, consider the fact that BlackBerry smartphones are far more efficient with respect to data usage, which means that their monthly service charges will also likely increase.”

This worrying news comes after British bank Standard Chartered already gave employees the choice to use iPhones.

KitGuru says: Worrying news for a sector that has always been RIM dominant.

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