Apple moved to take on the Blackberry today by announcing plans to allow its iPhone to link up to corporate email systems.

Until now, the Blackberry has been the preferred gadget of the business community as it allows executives to synchronise Microsoft applications, such as Microsoft Outlook email, contacts and calendar, with the smartphone. Many businesses shied away from using the iPhone as it does not work well with their email systems.

Speaking at Apple's headquarters in Cupertino, California this evening, Phil Schiller, head of worldwide marketing for Apple, said the iPhone's next software update would support Microsoft's Exchange product.

The news saw shares of Research In Motion, maker of the Blackberry, fall 2.7 per cent to $99 on the Nasdaq.

Mr Schiller said: "The iPhone can now work directly with the Exchange server." He did not say when the update would be made available.

Apple also unveiled tools to allow outside developers to create software programmes for the iPhone for the first time.

The iPhone currently has 28 per cent of the smartphone market. Last month Apple set a target of selling 10 million iPhones by 2009.

Shares of Apple, the maker of the iPhone, iPod and Mac line of computers, fell $1.05 to $123.37.

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