Report: RIM to release answer to iPhone : Palm could be wounded in crossfire

News on the high-end smartphone front continues to come in hot and heavy, with Apple Inc. expanding its iPhone market, Research In Motion Ltd. reportedly gearing up to release its own touchscreen device, and Palm Inc. struggling to catch up.
First up is Apple, which will add Austria, Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia and Switzerland to its list of international markets through an expanded distribution deal with European carrier Orange. The deal is set to kick in “later this year.”
The news serves as another boost to Apple, which is hard at work expanding its markets ahead of what many expect to be an early June launch of its rumored 3G iPhone.
And in an effort to counter Apple’s international moves – as well as the company’s stated intent to entice business customers through a newly opened operating system – it appears RIM is gearing up for its own response to the highly hyped device. According to a report in the Wall Street Journal, RIM will release a touchscreen BlackBerry in the third quarter, to be sold by Verizon Wireless in the United States and Vodafone Group plc in Europe.
The report comes just a few days after RIM unveiled a 3G BlackBerry, the Bold, bound for AT&T Mobility.
RIM’s forthcoming touchscreen gadget joins a large and growing list of touchscreen, iPhone-style devices. LG Electronics Co. Ltd.’s Voyager at Verizon Wireless and Vu at AT&T Mobility sit alongside Samsung Electronics Co. Ltd.’s Glyde at Verizon Wireless and forthcoming Instinct for Sprint Nextel Corp. Further, Nokia Corp., the world’s largest cellphone marker, said it continues to work on its impending touchscreen phone.
Interestingly, it seems Palm Inc. may be one of the wounded in the high-end touchscreen war. According to a research note from UBS analyst Maynard Um, “high-profile smartphone launches by Palm’s competitors are likely to create a near-term overhang.”
UBS downgraded Palm’s stock from Neutral to Sell as a result. The company’s stock was down slightly after the news to around $5.75 per share.