[Newton:] Here we are, live in New York City outside the Time Warner Center. And a day after Apple and IBM announced a partnership, BlackBerry shares took a beating, BlackBerry down more than 10 percent. Shares of Apple closed flat. IBM, though, rose 2 percent. Apple wants to make devices tailored to companies in banking, health care, insurance that's just to name a few. It's teaming up with IBM to create apps for these businesses. And it may seem like an unlikely duo. The rivalry between the companies has been a bitter one. Apple made this famous ad in 1984 when it was battling IBM.
[Unidentified Male:] Today we celebrate the first glorious anniversary of the Information Purification Directives. We have created, for the first time in all history, a garden of pure ideology, where each worker may bloom, secure from the pests of purveying contradictory thoughts. Our Unification of Thought is more powerful a weapon
[Newton:] Apple could probably run that ad today to describe its culture. Now, there's no word yet on what apps will be produced. CEO and president of the Boston Consulting Group, Rich Lesser, believes that this venture would appeal to a lot of companies even outside the tech sector.
[Rich Lesser, Ceo And President, The Boston Consulting Group:] The way consumers want to interact with the world affects everybody, and I think this combination, where you're combining Apple's consumer-driven ecosystem and IBM's business ecosystem, and together, creating business-related applications that can really be advantaged. I think it's a really powerful combination, and that's exactly the kind of things business way beyond the tech world are thinking about, about how they need to change their models and how they think about what ecosystems they want to be a part of.
[Newton:] Our business correspondent Samuel Burke joins me now. That really shook a lot of people, Apple and IBM joining forces, and yet, they are so desperate to get that piece of the business pie.
[Samuel Burke, Cnn Business Correspondent:] Well, Paula, think of all the places where you see IBM products cash registers, for example. They almost always have the IBM logo. So what BlackBerry investors fear is that now instead of having IBM cash registers, you'll have Apple iPads and Apple phones in all of these people, and people taking your orders on those devices using apps fro IBM on devices from Apple. And that's what really has people nervous. But some people might be surprised that BlackBerry even still existed. Whenever I talk about Apple and BlackBerry and all these companies, I always want to remind people of the market share and just how much BlackBerry has lost.
[Newton:] How bad is it, Samuel?
[Burke:] It's really bad. So, if you look at the operating systems and their market share, you have about 81 percent for Android, so they're the clear winner. You have IOS, which of course, Apple's operating system, taking about 15 percent of market share, what you're seeing on your screen right there. Windows phones does even better than BlackBerry, your old Canadian friends. They have 3 percent Windows phone, and your Canadian friends, 0.5 percent, so there's barely anything left. The one thing that people were clinging onto was the fact that so many corporations, like the people inside this building, were still typing away on their little keyboards. But now, it looks like IBM might even send those people typing somewhere else.
[Newton:] Stop mocking me! This is my BlackBerry, and you're mocking me for typing, you're mocking me this is a great Canadian company that thought that it had a lot of proprietary information, patents that people said was valued. It was the security of this system. What has happened to the value of all of that?
[Burke:] Well, a lot of people have talked about that over and over again, that this little device has a lot of security. But some really some security experts that I have talked to have said over and over again, BlackBerry really sold out their security. They made deals with a lot of countries to share information with certain governments, and they said that's where they lost it. So, what IBM can go in and do is create apps that provide security. We're already seeing that security has become a big premium not just for Apple and IBM. But for many other companies, including some smaller companies moving in to fill that void, so they can go in and create apps that will make the iPhone secure, rendering this device less and less necessary, even for big corporations, which have clung on when everybody else, as you saw in those numbers, has already gone away.
[Newton:] It'll be interesting to see what that company does, interesting to see how soon we will see new apps, business apps.
[Burke:] A hundred apps, they say, are coming from IBM for Apple.
[Newton:] Tailor-made for certain industries.
[Burke:] We'll see.
[Newton:] It'll be interesting to see. Thanks, Samuel, appreciate you coming out here, even if you had to mock the Canadians, that's all right. The United States has now imposed new sanctions against Russia. Now, people have been talking about this for a while. They were at what they call the Tier One, and no one had heard anything more, given all the tensions between Ukraine and Russia. Now, those new sanctions include important Russian assets, like Gazprom Bank and the Rosneft Oil Company. It also includes the deputy chairman of the Douma and an aid to President Vladimir Putin. We should say that many people were already on that list say they wear it as a badge of honor. Still to come on QUEST MEANS BUSINESS, when Murdoch buys, the market moves. We'll show you how, next.