RIM Situation Analysis

RIM���

Situation Analysis���October 26, 2011���

RIM Sales Growth���

US Smartphone Penetration���

US Smartphone market penetration���

US Market Penetration of all cell phones���

And then there’s the Playbook…���

Q1 2011:���Approximately half a million Playbook tablets

sold in comparison to more than nine million of Apple’s iPads.���

Oct 26, 2011:���RIM announces it will delay launch of PlayBook

OS 2.0 tablet until February 2012 ���

Excerpts from anonymous “Open letters” to RIM Management���

"Success cannot be borne of a 2005 status quo when the world looks a lot different now than it did even 12 months ago."���

"It can take weeks of time to make small changes, and months to make major ones. "���

RIM 10-Year Performance���

RIM Timeline���•   ���

January 1998 IPO on the Toronto Stock Exchange ���August 1998 Releases Inter@ctive pager 950 ���1998-2008: Releases devices running on GSM, CDMA, and iDEN networks. BlackBerry

devices are ubiquitous in the corporate environment.���October 2008, Named one of "Canada's Top 100 Employers" ���February 2009 Expands global operations Workforce: 12,000 world wide.���June 2009 Acquires Dash Navigation���August 2009, Acquires Torch Mobile ���August 2009, Fortune Magazine: RIM fastest growing company in world: 84% growth in

profits over three years ���March 2010, Acquires BlackBerry app developer Viigo ���April 2010, Acquires QNX Software Systems to enhance the user experience between

smartphones and in-vehicle audio and infotainment systems" ���April 2011 Release of Playbook tablet computer���June 2011, Investor push to split dual-CEO structure withdrawn ���June 2011, Q1 2011 revenue will drop for the first time in nine years ���June 2011: 2 anonymous open letters to board���July 2011 Cuts 2,000 jobs (11%), biggest lay-off in its history. ���October 2011 One of worst service outages in the company's history. ���Oct 25, 2011 Delays launch of PlayBook OS 2.0 tablet until February 2012���

Number of current Blackberry models: 43���

Number of current iPhone models: 6 (available in black or white)���

Appendix  

•  This  is  frequently  where  you’ll  put  the  addi7onal  slides  that  don’t  find  a  place  in  the  main  presenta7on,  but  you  s7ll  feel  add  value,  and  you  might  want  to  u7lize.  Following  are  the  slides  we  didn’t  include  in  the  presenta7on  

The week iPhone 4S came out, Blackberry trade- ins spiked 80%. ���

Android trade ins increased 72%.���

Source:  CNet  

USA Today—Jim Balsillie co-CEO RIM���

“The existing portfolio of BlackBerry products has been in market for close to a year, and delivering new products has proven more challenging than anticipated.”���

June 2008 to June 2011, RIM's shareholders lost almost $70 billion or 82 percent ���

Biggest decline among communications equipment providers, from $83 billion in 2008 to $13.6 billion in 2011.���