iPhone Suits Up: Mixed Reactions

Shares of the company rose just over 1 percent, gaining $1.47 to $122.40 to close Friday trading on the Nasdaq. In afterhours, Apple lost a quarter.

The Cupertino, Calif.-based consumer electronics maker unveiled new corporate functionality for the iPhone at its headquarters yesterday, including tools to synchronize mail with Microsoft Exchange servers, a corporate favorite.

The move was seen as necessary for Apple to reach its goal of 10 million iPhones sold by the year's end.

In recent weeks a number of industry watchers have questioned whether the company would be able to meet its goal as competition increases and Asian manufacturers turn out lower-than-expected production.

Enterprise features may enable Apple to tap into a market beyond consumers, including the devoted users of Research In Motion's Blackberry, the ubiquitous phone of choice for millions of business users worldwide.

During the 90 minute presentation, Apple strived to show-off the phone's new business muscle, and announced it has already begun working with firm's like Salesforce, Genetech, Nike, Disney, and other large companies in adopting the iPhone for the corporate environment.

"[The announcement] increase traction for iPhone amongst business users," though more with small businesses, and less with large enterprises, commented Mike Abramsky of RBC Capital. The analysts sees the company adding 400,000-800,000 Exchange users by the end of the year.

Digging deeper into Blackberry's market space may prove more difficult however as the RIM has been the premiere business provider for several years.

"Most businesses using the BlackBerry platform have also purchased specialized hardware, which represents a significant hurdle for widespread iPhone adoption in business environments," Gene Munster of Piper Jaffray said in a research note.