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The Eye of the (BlackBerry) Storm

January 30, 2009
by Arik Hesseldahl
Technology Writer, BusinessWeek.com

Arik Hesseldahl

As the battle for the smartphone market heats up, comparisons abound between Research In Motion’s BlackBerry Storm, released in November, and Apple’s iPhone.

For starters, both devices boast a touchscreen, forgoing the buttons found on more conventional phones. But the more important comparison, from the bottom-line perspective, lies in which device carries a fatter margin. And on a cost-per-unit basis, the advantage for the moment appears to belong to Apple (AAPL). A new analysis of the BlackBerry Storm by market research firm iSuppli indicates the cost of components and manufacturing for RIM (RIMM) is slightly less than $203. By comparison, those costs for Apple’s iPhone 3G, the second iteration of the device, are less than $175.

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