Is AT&T Cutting Blackberry Features?

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Late word from The Inquirer is that AT&T (T) may cut the GPS function from the new RIMM (RIMM) Blackberry so that it will not steal from Apple (AAPL) iPhone sales.

AAPL’s iPhone is supposed to be the driver of AT&T’s efforts to get new wireless customers. The wireless company’s fears are that the new Blackberry 8820 will have both GPS and WiFi functions at a price well below the iPhone.

AT&T almost certainly makes more money from the $500 iPhone and its high-priced call plans that its does from the RIMM Blackberry.

RIMM’s shares are up over 160% over the last year, outpacing the AAPL rise of about 80%.

If the news about AT&T blocking the new Blackberry function are true, RIMM’s magnificent rise could be coming to an end.

Douglas A. McIntyre