Research in Motion - A Company Analysis

Brief Description

Research In Motion Limited (RIM) (TSX: RIM, NASDAQ: RIM) is a Canadian telecommunication and wireless equipment company best known as the developer of the BlackBerry smartphone. RIM is headquartered in Waterloo, Ontario, Canada. It was founded by Mike Lazaridis, who served as its co-CEO along with Jim Balsillie until January 22, 2012 when RIM announced that both have stepped down and the new CEO will beThorsten Heins. The company is listed on the NASDAQ stock exchange in the USA in addition to the Toronto Stock Exchange in Canada.

History

Prior to the manufacture of the BlackBerry, RIM worked with RAM Mobile Data and Ericsson to turn the Ericsson-developed Mobitex wireless data network into a two-way paging and wireless e-mail network. Pivotal in this development was the release of the Inter@ctive pager 950, which started shipping in August 1998. About the size of a bar of soap, this device competed against the SkyTel two-way paging network developed by Motorola.


RIM's early development was financed by Canadian institutional and venture capital investors in 1995 through a private placement in the privately held company. Working Ventures Canadian Fund Inc. led the first venture round with a C$5,000,000 investment with the proceeds being used to complete the development of RIM's two-way paging system hardware and software. A total of C$30,000,000 in pre-IPO financing was raised by the company prior to its initial public offering on the Toronto Stock Exchange in January, 1998 under the symbol RIM. Since then, RIM has released a variety of devices running on GSM, CDMA, and iDEN networks.

Origin of BlackBerry

First BlackBerry Phone

Evolution of BlackBerry

Back in 2001, RIM apparently hired a consultancy called Lexicon Branding to find a fitting title for its wireless messaging devices. Understandably, RIM had been toying with various names that included and/or played on the word "e-mail." But after Lexicon convinced the company to consider other options—many folks subconsciously associate "e-mail" with work, and the word can, therefore, lead to raised blood pressure—someone noted that the tiny keys on RIM's older devices resembled a group of seeds.

The team then considered a variety of seeded fruits and vegetables before ultimately deciding on "BlackBerry," since RIM's devices were largely colored black at the time.

History of BlackBerry

The first BlackBerry device, the 850, was introduced in 1999 as a two-way pager in Munich, Germany. The name BlackBerry was coined by the marketing company Lexicon Branding.

History of BlackBerry

In 2003, the more commonly known smartphone BlackBerry was released, which supports push email, mobile telephone, text messaging, Internet faxing, Web browsing and other wireless information services. It is an example of a convergent device. The original BlackBerry devices, the RIM 850 and 857, used the DataTac network.


BlackBerry first made headway in the marketplace by concentrating on email. RIM currently offers BlackBerry email service to non-BlackBerry devices, such as the Palm Treo, through its BlackBerry Connect software.


The original BlackBerry device had a monochrome display, but all current models have color displays. All models, except for the Storm series and the all-touch Torch 9850/9860 had a built-in QWERTY keyboard, optimized for "thumbing", the use of only the thumbs to type. The Storm 1 and Storm 2 include a Sure Type keypad for typing. Originally, system navigation was achieved with the use of a scroll wheel mounted on the right side of phones prior to the 8700. The trackwheel was replaced by the trackball with the introduction of the Pearl series which allowed for 4 way scrolling. The trackball was replaced by the optical track pad what people now use as thumb pad with the introduction of the Curve 8500 series. Models made to use iDEN networks such as Nextel and Mike also incorporate a push-to-talk (PTT) feature, similar to a two-way radio.

Range of BlackBerry Products

BlackBerry Ad

New BlackBerry Ad

1. BlackBerry Smart Phones

BlackBerry Smartphone

BlackBerry 7 devices:

§ BlackBerry Bold series (2011): BlackBerry Bold 9900/9930/9790

§ BlackBerry Porsche Design (2012): BlackBerry Porsche Design P'9981
§ BlackBerry Torch series (2011): BlackBerry Torch 9810
§ BlackBerry Torch series (2011): BlackBerry Torch 9850/9860
§ BlackBerry Curve series (2011): BlackBerry 9350/9360/9370/9380

BlackBerry 6 devices:

§ BlackBerry Torch series (2010): BlackBerry Torch 9800
§ BlackBerry Curve series (2010): BlackBerry Curve 9300/9330
§ BlackBerry Style 9670 (2010)
§ BlackBerry Pearl series (2010): BlackBerry Pearl 3G 9100/9105
§ BlackBerry Bold series (2010–2011): BlackBerry Bold 9780/9788

BlackBerry 5 devices:

§ BlackBerry Bold series (2008–2010): BlackBerry Bold 9000/9700/9650
§ BlackBerry Tour series (2009): BlackBerry Tour (9630)
§ BlackBerry Storm series (2009): BlackBerry Storm2 (9520/9550)
§ BlackBerry Storm series (2008): BlackBerry Storm (9500/9530)
§ BlackBerry Curve series (2009–2010): BlackBerry Curve 8900 (8900/8910/8980)
§ BlackBerry Curve series(2009): BlackBerry Curve 8520/8530

Blackberry 4 and earlier devices:

§ BlackBerry 8800 series (2007): BlackBerry 8800/8820/8830
§ BlackBerry Pearl series (2006): BlackBerry Pearl 8100/8110/8120/8130
§ BlackBerry Pearl Flip series (2008): BlackBerry Pearl Flip 8220/8230
§ BlackBerry Curve series (2007): BlackBerry Curve 8300 (8300/8310/8320/8330/8350i)
§ Early pager models: 850, 857, 950, 957
§ Monochrome Java-based series: 5000, 6000
§ First color series: 7200, 7500, 7700
§ First SureType phone series: 7100

2. BlackBerry Messenger

BlackBerry Messenger (BBM) is a proprietary Internet-based instant messenger application included on BlackBerry devices that allows messaging between BlackBerry users. It was developed by the manufacturer of the BlackBerry: Research In Motion (RIM). Messages sent via BlackBerry Messenger are sent over the Internet and use the BlackBerry PIN system, so communication is only possible between BlackBerry devices.


The service communicates over the phone's Internet connection using the mobile phone network. A wireless LAN ("Wi-Fi") network connected to the Internet may also be used to send messages, however, most service providers will not allow sign-in to BlackBerry Messenger without the purchase of a BlackBerry data plan.


Exchanging messages is possible to a single person or via dedicated discussion or chat groups, which allow multiple BlackBerry devices to communicate in a single session. In addition to offering text-based instant messages, BlackBerry Messenger also allows users to send pictures, voicenotes (audio recordings), files, location on a map, and a wide selection of emoticons (also known as "smileys", an example would be :-) ) over the BlackBerry network.


With the release of BlackBerry Messenger 5.0, BlackBerry allows users to use a QR Code to add each other to their respective friends lists rather than using only numeric PIN identification or an email address associated with the user's BlackBerry. Recent BlackBerry devices can also exchange BBM contacts using Near Field Communication technology.

Introducing BBM

3. BlackBerry App World

BlackBerry App World is an application distribution service and application by Research In Motion (RIM) for a majority of BlackBerry devices. The service provides BlackBerry users with an environment to browse, download, and update third-party applications. The service went live on April 1, 2009. Of the three major app providers, it has the largest revenue per app at $9,166.67 compared to $6,480.00 and $1,200.00 by the Apple App Store and Android Market, respectively.

4. BlackBerry Play Book

BlackBerry PlayBook

BlackBerry Playbook Commercial

The BlackBerry PlayBook is a tablet computer made by Research In Motion. It was first released for sale on April 19, 2011, in Canada and the United States.


The PlayBook is the first device to run BlackBerry Tablet OS, based on QNX Neutrino, and runs apps developed using Adobe AIR. It was later announced that the BlackBerry Tablet OS would be merged with the existing BlackBerry OS to produce a new operating system, BBX (later renamed BlackBerry 10) that would be used universally across RIM's product line. A second major revision to the BlackBerry PlayBook OS was released in February 2012. The PlayBook also supports Android OS applications, allowing them to be sold and installed through the BlackBerry App Worldstore.


Early reviews were mixed saying that although the hardware was good, several features were missing. Shipments totalled approximately 500,000 units during the first quarter of sales and 200,000 in the following quarter. Much of the 700,000 units shipped to retailers remained on the shelves for months, prompting RIM to introduce dramatic price reductions in November 2011 to increase sales.

Market Share

Market Share

Share of Smartphones

War between Apple and BlackBerry

5 best BlackBerry Phones

RIM's Executive Team

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Thorsten Heins
President and CEO, Research In Motion

Thorsten Heins was named President and Chief Executive Officer at Research In Motion in January 2012. He previously served as Chief Operating Officer, Product Engineering, overseeing the BlackBerry smartphone portfolio world-wide.
Prior to joining RIM in 2007, Thorsten held several positions in the wireless arena including the Chief Technology Officer of Siemens' Communications Division and several general management positions in Hardware and Software businesses.
Thorsten holds a master's degree in Science and Physics from the University of Hannover in Germany. Thorsten also serves as a member of the Board of Directors for the Canadian German Chamber of Industry and Commerce Inc.

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Brian Bidulka

Chief Financial Officer 

Brian Bidulka is Chief Financial Officer at Research In Motion serving as the Company's senior financial officer overseeing all financial reporting and compliance activities.
Prior to joining RIM in 2005, Brian held numerous finance positions at Molson Inc. and Ernst & Young LLP.
Brian received his Chartered Accountant's designation in 1989 and holds an Honours Bachelor of Commerce degree from McMaster University.

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Robin Bienfait
Chief Information Officer

Robin Bienfait is the CIO of Research In Motion. Robin oversees the Enterprise Business Unit, BlackBerry Operations and Corporate IT.
Prior to joining RIM, Robin held senior leadership positions within AT&T Labs and Global Network Services.
A graduate of the Georgia Institute of Technology with a master’s degree in Management of Technology, Robin also holds a bachelor’s degree in engineering from Central Missouri State University and an associate in business degree from Maryland University – European Division.

Corporate Social Responsibility

RIM and Free The Children

RIM is proud to partner with and help build on Free The Children’s record of local and global youth engagement to take action towards an inspired vision for tomorrow.

Free The Children has taken the unique notion of “children helping children” to affect social change around the world. Its work has resulted in significant changes in two distinct areas, both of which RIM is proud to support. The first and most direct is access to education. The second is an increased level of awareness and engagement that changes the way the youth who volunteer view themselves and the world around them—a mechanism for shaping the leaders of tomorrow.


Through domestic empowerment programs and leadership training, Free The Children inspires young people to become socially conscious global citizens as well as agents of change for their peers worldwide.


In November 2011, RIM sponsored the second Waterloo Region "We Day", a one-day event designed to launch a year-long set of initiatives and actions as part of the "We Schools in Action Program". The day was a rocking, inspirational success, with 6,000 kids from over 200 local schools in attendance and 210 volunteers from RIM. Speakers included Magic Johnson, Mia Farrow, Romeo Dallaire and a wide variety of musical performers and entertainment.


RIM has also sponsored a program to “adopt” two villages, one in India and the other in Kenya. In addition to supporting community development activities, RIM sponsors the Build A Village Award, which will allow 50 students from Canada to travel and work directly with the villagers in the summer of 2012. The students will assist in providing access to basic needs in the context of Free The Children’s four pillars of community development: healthcare, water and sanitation, education and alternative income. For the participating youth, it will be a vital experience that will change their world view and give them personal empowerment.

Inspiring today’s youth for tomorrow’s world

RIM uses hands-on workshops to encourage youth to pursue post-secondary studies and careers in science, technology, engineering and math.


Through the BlackBerry® Hands-on Workshop series, RIM strives to bring science to life for 12- to 18-year-old students. The interactive workshops cover the basics of wireless technology, cryptography, GPS, international business and careers in science, technology, engineering and math.


In fiscal year 2011, workshops reached Canadian students in Kitchener-Waterloo, Ottawa and Halifax, and students in Birmingham in the U.K. and Bochum in Germany.


A sponsor of the British Science Festival in September 2010, RIM provided 16 workshops to more than 400 students wanting to learn about the science behind technology.

Proud2Be connects employees and the community

RIM supports giving back to communities through Proud2Be, a set of internal employee programs.


Now in its second year, RIM’s Proud2Be program offers employees several opportunities to support their communities through fundraising drives and volunteerism.

Donations by RIM Employees

References

http://www.rim.com/company/corporate-responsibility/corporate_philanthropy.shtml
http://en.wikipedia.org/wiki/Research_In_Motion
http://en.wikipedia.org/wiki/BlackBerry
http://en.wikipedia.org/wiki/BlackBerry_Messenger
http://en.wikipedia.org/wiki/Blackberry_App_World