To woo more business customers, Apple said it's tweaking the iPhone to support Microsoft Corp.'s Exchange software, which addresses a key weakness in the gadget and puts it in more direct competition with Research in Motion Ltd.'s BlackBerry and Palm Inc.' Treo smart phones.
Apple has forecast that it will sell 10 million iPhones by the end of the year, giving the device roughly 1% of the worldwide cell phone market. In January Apple CEO Steve Jobs said the company has sold 4 million iPhones since they went on sale June 29.
The iPhone has claimed 28% of the U.S. smart phone market since its release in June, according to Jobs. But many businesses have shied away because they want the device to work better with their corporate e-mail systems.
Philip Schiller, Apple's senior vice president of worldwide product marketing, said the software update will give iPhones the security and integration of e-mail, calendars, and contact lists that businesses have been demanding. (AP)