"Next year, I think will be a much bigger year for Apple and the iPhone in Canada," said IDC Canada analyst Kevin Restivo.

Bell (TSX:BCE) and Telus (TSX:T) switched on their new, advanced wireless networks this week and started selling the iPhone for the first time. Rogers (TSX:RCI.B) had been offering the iPhone for more than a year.

Now that all three of Canada's big wireless carriers can offer the iPhone, the sexy and sought-after touchscreen phone is expected to end up in more consumers' hands.

Smartphone penetration in Canada should be close to 25 per cent by the year's end, said Restivo, senior analyst of mobility research.

"This is where Apple stands to benefit so as a result it will gain share as the market grows," Restivo said from Toronto.

RIM (TSX:RIM) will also grow, but it's share will decrease over time, he said.

"It will own a smaller piece of a larger pie."

Google's Android operating system, in HTC and Motorola smartphones, will also offer more competition for RIM.

Competition is already heating up in the consumer space with life-style-oriented TV commericials from RIM and mobile phone company HTC.

"Consumers are notoriously fickle, so you need to have brand alliance. Brand alliance is everything in the smartphone game and that's why you are seeing this wave of commercials," Restivo said.

Analysts are divided on how much RIM can keep growing.

Citigroup Global markets analyst Jim Suva said in a note this week that the BlackBerry maker is facing greater competition from other smartphone companies and he slashed the company's target price.

Suva downgraded the stock to a "sell" with a target of US$50 from a "buy" rating valued at $100, which sent the stock down on Monday.

On Friday, shares in RIM closed at $63.07, up $1.42, on the Toronto Stock Exchange.

Restivo said RIM will keep growing but it's a question of how much.

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