Research In Motion (NASDAQ:RIMM), producer of the BlackBerry smartphone, has been facing new competition since the iPhone hit the market less than a year ago, The New York Times reported Sunday.

"Some consumers who might have considered the BlackBerry, who don't have the e-mail urgency of a mobile professional, are going to start selecting the iPhone. This isn't going to stop R.I.M., but it is going to slow them down," Needham & Co. analyst Charlie Wolf said.

In late 2007 BlackBerry reportedly held 40 percent of the U.S. smartphone market, 5 percent less than the year before. It is reported the iPhone took 17.4 percent of the market share during its first six months of sales.

Research In Motion has said it is working to keep up with consumers' growing demands.

"I wouldn't underestimate the amount of research we've done on user interfaces and technologies. We are not afraid to reinvent ourselves," said Mike Lazaridis, Research In Motion co-chief executive.