RIM appears to have been pushing sales of its newer Blackberry smartphones at the expense of older models, and that could turn into a positive for Apple's iPhone 3G sales, according to UBS analyst Maynard Um. Both companies could, however, see a downturn in sales due to weaker demand from the slowing economy.

"Our checks continue to indicate operators are pushing newer devices at the expense of older handsets, which should be positive for Apple (3G iPhones are still new)," Mr. Um said. "However, we expect iPhone units to be down quarter over quarter [by about 27 percent] as the channel works down inventory. Main risk we see for RIM and Apple is end demand, given data plan requirement and economy slowing, and competition."

He added that there are concerns over iPhone 3G sales as competition between smartphone makers intensifies.

Looking towards Macworld Expo in January, Mr. Um isn't expecting the annual conference and trade show to do much for the company's sales. "With notebooks, iPods and the iPhone all seeing fairly recent updates, we believe product announcements or enhancements will likely revolve around desktops and peripherals. We do not expect Macworld to be a material catalyst for Apple," he said.

Apple announced earlier in the week that CEO Steve Jobs will not deliver the company's keynote presentation at Macworld Expo, and that Vice President of Worldwide Marketing Phil Schiller will take his place. Apple also revealed that this will be the last Macworld Expo event it attends as an exhibitor. The company's announcements have led many to believe that Apple has nothing of significance to introduce at the event.

Mr. Um is maintaining his "Neutral" rating and US$110 target price for Apple's stock. Apple is currently trading at $90.17, up 0.7499 (0.84%).