http://www.morningstar.com/earnings/27083137-rimm-rimm-q1-2012.aspx

RIMM RIMM
Q1 2012 Earnings Call Transcript

Transcript Call Date 06/16/2011

RIM launched the PlayBook in Q1 in consumer electronics channel throughout the U.S. including Best Buy, Staple, Office Depot and many others, and we were pleased to ship approximately 500,000 units in the first quarter. PlayBook delivers on its promise of power, affordability and uncompromised web and the user experience continues to improve as we add more and more applications and content services to the platform.

While the PlayBook launched did not go as smoothly as we had planned, the potential of the product and the powerful underlying OS was recognized and acknowledged by partners, channels, reviewers and end users. We have already rolled out updates of the product to deliver compelling features, such as video chat, and a native Facebook application, and we look forward to adding content partnerships and growing the available applications over the coming months.

The recent availability of Adobe Creative Suite tools for PlayBook provides a superior publishing framework for content creators and is expected to catalyze the availability of content for PlayBook. The PlayBook is a significant product launch for RIM, not only because of the growth opportunity it provides, but because it is the first BlackBerry tablet and the first BlackBerry device to feature the powerful QNX-based OS that will also become the core of future BlackBerry Superphone.

Over the past several days the PlayBook has launched in 11 additional markets around the world with another five to follow in the coming weeks, and we believe this opportunity is at least as large as the North American opportunity. PlayBook was launched in the U.K. today with over 730 points of presence with our retail partners and early feedback has been excellent. PlayBook is now in the hands of over 1,500 enterprise customers in progressive stages leading to full deployment. As part of this process, customers are continuing to uncover new enterprise used cases for PlayBook and we are working closely with global enterprise solution providers to provide powerful new solutions to take advantage of the neat capabilities of PlayBook.

Cisco, Citrix, IBM, HP and SAP are few of the platform and system integration partners that RIM has established joint product roadmaps with and plans for joint sales activities. The recent launch of BlackBerry Balance is also an important step in growing the penetration of BlackBerry smartphones and tablets in the enterprise market, and since launch, Balance has been a meaningful driver of (BIS) upgrades which is allowing customers to test and pilot this solution for broader rollout.

We are working with Verizon to target enterprise accounts with PlayBook and RIM has hosted a number of CIO events to highlight PlayBook throughout the U.S. this quarter. RIM also recently began offering PlayBook to its retail channel and Bell, Rogers and TELUS in Canada have had good success with the product through targeted promotions and bundling packages with BlackBerry smartphones. We also are continuing to work with AT&T to certify BlackBerry Bridge for their subscriber base.

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