[Edward Kirk]

According to BusinessWeek on Wednesday, Apple's demographic has been overlapping more and more with that of Research In Motion, and the two companies are well on their way to colliding. Others believe that it is Apple and RIM that will be trying to overtake the traditional manufacturers, like Nokia, Samsung and Motorola.

Apple seems to be well on their way of selling 10 million iPhones by the end of 2008, a figure not far from RIM's 12 million average a year. Also worthy of note are that many of their target markets overlap, placing them in competition with each other.

Analysts like Andy Heargraves with Pacific Crest Securities believe that the real competition isn't between Apple and RIM, but smartphones versus dumb traditional phones. Bear Stern's Andy Neff agreed: "The battle is not RIM vs. Apple, but smartphones versus conventional handsets."

In addition, traditional companies like Motorola are having difficulties finding their place in the market. "Having tied its smartphone strategy to Microsoft with its Q phone line, Motorola hasn't generated much traction, while the popularity of its once red-hot RAZR line of conventional handsets has cooled substantially," Mr. Hesseldahl observed.

Nokia is also in an odd position, having focused on its recent agreement with the Universal Music Group and placing themselves in competition with iTunes, something that may or may not be positive.

"So whether the main competition is between Apple and RIM or more generally between smartphones and traditional cell phones, consumers -- and their thumbs and ears -- will surely take note," Mr. Hesseldahl concluded.

[via BusinessWeek]

Motorola needs to buy Palm

But it is likely too late as Apple's iPhone has too much traction it seems... but competition is good!