Researching in Motion 3Q Conference Call Nuggets: BB10 Delay and Emerging Markets

Research in Motion (NASDAQ:RIMM) reported its third quarter earnings and discussed the following topics in its conference call.

BB10 Smartphone Delay

Rod Hall – JP Morgan asked: I wondered if you could give us a little bit more color on the BB10 smartphone delay. You said that it was namely chipset-related. Was that a fairly recent update that you got from the chip manufacturer that that chip was going to delayed? Can you give us some idea because it sure seemed like at DevCon you thought that you’d be able to deliver the license sooner?

I’ve got one follow up to that.

Mike Lazaridis – President and Co-CEO responded: We’ve decided to use a highly integrated chipset that’s not available until the year in production.We’ve been using that chipset so that we could have a much more aggressive industrial design to the product and better power and efficiency.

Because of that and just making sure that we to then port that new platform, we’ve experienced a delay.

Hall followed up: It kind of sounds like maybe you were tiny, you weren’t getting the kind of power efficiency out of the software that you wanted to, you needed to go to a more power efficient chip. Can you just give us some idea why it seems like the delay was related to a chip decision that maybe you made rather than a delay in the part of the chip manufacture?

So, can you just give us some idea what happened there?

Lazaridis responded: We decided that we wanted to target a higher efficiency, lower power consuming more integrated chipset for LTE products in the U.S.

The BlackBerry 7 products are doing really well around the world. We wanted to make sure that the product we launch in the U.S. had the performance and battery life expectations our consumers are going to be expecting with BlackBerry product on LTE.

Growth in Emerging Markets

Richard Kramer – Arete Research asked: I have a couple of questions.

One is given the shift of the business to Latin America and Asia and with some of the new Curve products not being very low end, how do you think about your future growth in emerging markets? Are you going to have a portfolio of very low cost handsets?  What does this mean when you look at the organization for how you have to shift your resources maybe out of developed markets and in developing ones?

Mike Lazaridis – President and Co-CEO responded: That’s a fair question, Richard. Yes, there’s a very powerful opportunity at the entry level as you say. But that also exists in just about every market in the world because some of the most sophisticated markets in the world are still over half on feature phones.

We see that a really important opportunity for us going forward is to capture that entry level in the BB 7 products.