1. Research In Motion (NASDAQ: RIMM)
Derek Sakamoto
Technology Industry Group

2. Company Overview
“leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market”
i.e. Blackberry
First-mover advantage in the smart phone market

3. Industry Overview Apple’s iPhone (AT&T) Google’s Android (Verizon)
Redefined the smart phone → First-mover advantage
AT&T contract ends 2009
Google’s Android (Verizon)
Free and open source software
Easy development
Recently allied with Verizon
Palm’s Pre (Sprint)
Innovative Javascript-based operating system

4. Comparison Catered for 3rd-party dev. Map email Sex-appeal
Blackberry
iPhone, Android, Palm Pre
Proprietary Development
Proprietary Client
Must maintain servers
Tired design
Storm → Harsh Review (NYT)
Storm II → Better than I (WSJ)
Catered for 3rd-party dev.
Free Development
Faster Development
Map
Little server overhead
Sex-appeal
QWERTY/No-QWERTY

5. Performance (Chart)

6. Comparable Analysis RIMM AAPL PALM Industry P/Earnings 18.21 38.78
< 0
25.75
P/Book
6.145
7.672
-4.333
2.07
P/Sales
3.308
5.392
1.543
P/Free Cash Flow
59.2
18.67
-10.23
45.16
ROE
32.22%
23.35%
-18.91%
12.31%
ROA
23.36%
12.21%
-82.64%
Current
2.407
1.881
0.6168
Net Profit Margin
13.49%
16.87% %
7.59%

7. Recommendation: Sell Added Competition Inefficient System Design
Inefficient R&D Practices
Inability to adjust to changing market