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CNBC TRANSCRIPT: FIRST ON CNBC: RESEARCH IN MOTION CEO THORSTEN HEINS ON CNBC’S “SQUAWK BOX” TODAY AT 8AM

When: Today, Friday, September 28, 2012

Where: CNBC’s “Squawk Box

Following is the unofficial transcript of a FIRST ON CNBC interview with Research In Motion CEO Thorsten Heins today on CNBC’s “Squawk Box.” Following is a link to video of the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000118792.

All references must be sourced to CNBC.

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BECKY QUICK: JOINING US FIRST ON CNBC IS THORSTEN HEINS, HE'S PRESIDENT AND CEO OF RESEARCH IN MOTION. THORSTEN, THANK YOU FOR JOINING US THIS MORNING. CONGRATULATIONS ON THE RESULTS LAST NIGHT. BUT WHAT NOW FOR RIM?

THORSTEN HEINS: THANK YOU, AND GOOD MORNING, FIRST. WHAT NOW IS IT WAS AN IMPORTANT FIRST STEP TO REALLY EXECUTE PRUDENTLY AGAINST THIS QUARTER AND THE CHALLENGES WE FACE. BUT THERE'S MANY MORE STEPS TO COME UNTIL WE LAUNCH BLACKBERRY 10 AND I THEN THINK THE MARKET WILL BE VERY EXCITED ABOUT WHAT BLACKBERRY 10 HAS TO SHOW AND WHAT IT WILL TO DELIVER TO ITS CUSTOMERS.

QUICK: WHAT IS BLACKBERRY 10 GOING TO LOOK LIKE? WHAT IS IT GOING TO DELIVER? THERE ARE A LOT OF QUESTIONS AND AS SOMEONE MYSELF WHO IS A LONG-TERM BLACKBERRY USER, I'M REALLY CONSIDERING RIGHT NOW LOOKING AT THE iPHONE AND LOOKING AT BLACKBERRY, YOU ALWAYS HAD ME WITH BLACKBERRY BECAUSE OF THE KEYBOARD BUT I AM LOOKING FOR A PHONE THAT OFFERS MORE THINGS. WHAT IS THE BLACKBERRY 10 GOING TO OFFER?

HEINS: SO, FIRST, TO YOU BECKY, THERE WILL BE A BLACKBERRY 10 DEVICE WITH A FANTASTIC KEYBOARD EXPERIENCE.

QUICK: THAT'S A BIG SELL.

HEINS: YES. AND, YOU KNOW, HOLD ON TO IT AND THERE’S A GREAT NEW DEVICE COMING FOR YOU. BUT ALSO THERE'S ALSO A FULL TOUCH VERSION AS WE KNOW THAT THE MARKET IS SEGMENTING IN BOTH TOUCH AND QWERTY KEYPADS. BUT THAT’S NOT ALL, THIS IS THE FORM FACTORS AND WE LOVE OUR QWERTY CUSTOMERS BUT WE ALSO NEED AND WANT TO GAIN MARKET SHARE IN THE FULL TOUCH SEGMENT, WHAT BLACKBERRY 10 DELIVERS IS A WHOLE UNIQUE USER EXPERIENCE. IT IS NOT THE IN AND OUT PARADIGM OF ANY APPLICATION GRID AS YOU KNOW IT ON TODAY'S DEVICES. IT IS THE BLACKBERRY HUB THAT REALLY CONNECTS ALL OF YOUR CONVERSATIONS, ACTION ITEMS, TASKS-- MUCH MORE THAN JUST A SOCIAL NETWORKING AGGREGATOR. AND ITS USER INTERFACE THAT WE CALL THE BLACKBERRY FLOW THAT ACTUALLY REALLY ALLOWS YOU TO TAKE ACTION ACROSS ALL THESE APPLICATIONS REALLY WITH THE SWIPE OF A THUMB, SO WE'RE VERY EXCITED ABOUT IT AND WE ARE TRULY CONVINCED THAT THIS IS GOING TO BE A MIND-CHANGING USER EXPERIENCE.

ANDREW ROSS SORKIN: THORSTEN I PLAYED WITH THE BLACKBERRY 10 AND I WILL ADMIT IT'S PRETTY AWESOME. BUT I’VE ALSO PLAYED -- I GOT TO SEE ONE, THEY’VE HAD DEVELOPER VERSIONS AROUND. BUT I ALSO HAVE PLAYED WITH MICROSOFT’S NEW WINDOWS PHONE ON NOKIA WHICH IS ALSO PRETTY AWESOME BUT IT HASN'T REALLY PENETRATED THE MARKET IN PART BECAUSE IT HASN'T HAD THE APPS AND FRANKLY BECAUSE iPHONE AND ANDROID ARE SO FAR AHEAD. WHAT DO YOU DO ABOUT THAT ISSUE?

HEINS: SO, WE HAVE JUST CONCLUDED BLACKBERRY JAM CONFERENCES IN ABOUT 30 CITIES WORLDWIDE. YOU’VE HEARD ABOUT THE BLACKBERRY JAM AMERICAS WHERE IT ALL FINALLY CULMINATED IN A GREAT SESSION WHERE WE REVEALED A FEW MORE FEATURES OF BLACKBERRY 10. WE HAVE AND WE ARE WORKING ON AN APPLICATION ECO-DEVELOPER SYSTEM WE GET RAVING FEEDBACKS FOR THE APPLICATION DEVELOPER TOOLKIT THAT WE'RE PROVIDING. BECAUSE THIS TIME WE LISTENED ACTUALLY TO THE APPLICATION DEVELOPERS AND ASK THEM WHAT DO YOU WANT FROM US IN ORDER TO DEVELOP AGAINST BLACKBERRY 10. BECAUSE FRANKLY DEVELOPING AGAINST THE FORMER BLACKBERRY OS WASN'T ALWAYS QUITE AS EASY AND THEY'RE SUBSCRIBING BIG TIME TO BLACKBERRY 10 SO I AM EXTREMELY CONFIDENT AND I SEE THE APPS COMING IN ALREADY AND EVERY DAY PEOPLE POSING APPS TO ME AND SHOW THEM TO ME AND I'M VERY, VERY CONFIDENT THAT WE WILL BE NOT JUST LAUNCHING WITH A GREAT DEVICE, I THINK WE WILL HAVE SUFFICIENT AND WE WILL ALSO HAVE MEANINGFUL APPLICATIONS ON BLACKBERRY 10.

BETHANY MCLEAN: WHAT DO YOU SAY TO YOUR COMPANY'S MANY SKEPTICS WHO SAY THERE'S JUST NO WAY RIM CAN MAKE ITS WAY BACK FROM THIS?

HEINS: I THINK IT'S IMPORTANT TO UNDERSTAND THAT RIM HAS CLEARLY IDENTIFIED ITS POSITION IN THE MARKET. WE CALL THEM THE BLACKBERRY PEOPLE. WE WANT TO BE THE BEST TOOL. WE WANT TO BE THE BEST FRIEND OF THOSE PEOPLE THAT WANT TO ACHIEVE THEIR OWN PERSONAL SUCCESS. THAT CAN BE A BUSINESS EXECUTIVE, BUT IT CAN BE A SPORTS GUY. IT CAN BE AN ARTIST. IT CAN BE ACTUALLY A STUDENT IN UNIVERSITY, RIGHT? WE WANT TO HELP THEM TO ACHIEVE SUCCESS. THIS IS WHAT ALL OF BLACKBERRY 10 CENTERS AROUND. AND NEEDLESS TO SAY THAT TABLE STAKES SUCH AS BROWSING AND MULTIMEDIA IT'S GOING TO BE THERE. IT'S GOING TO BE THERE AT A VERY HIGH PERFORMANCE LEVEL.

QUICK: I THINK THE MARKET WAS SURPRISED THAT YOU WERE ABLE TO ADD TO YOUR USER BASE OVER THIS PAST QUARTER, BUT WHEN THEY LOOKED AT WHO THOSE USERS WERE, A LOT OF THEM WERE COMING IN DEVELOPING NATIONS. WHERE DO YOU SEE THE CORE BLACKBERRY USER AND WHERE ARE YOU GOING TO MAKE GAINS DOWN THE ROAD?

HEINS: BLACKBERRY TODAY SEES A VERY DIFFERENT SITUATION IN VARIOUS REGIONS, BECKY. WE HAVE CERTAINLY HAD MARKET SHARE LOSSES IN THE U.S. NO DOUBT ABOUT THIS. BUT WE ARE STILL GAINING TRACTION AND GAINING A LOT OF GOOD SUBSCRIBERS IN SOUTH AFRICA AND MIDDLE EAST; IN LATIN WE ARE STILL NUMBER ONE AND IT IS BECAUSE OF THE COMBINATION OF A GREAT DEVICE WITH A GOOD USER INTERFACE, BUT MOSTLY ALSO BECAUSE OF BBMs. BLACKBERRY MESSENGER JUST KICKS IT IN THOSE MARKETS AND THE COMBINATION OF THESE ELEMENTS JUST MAKES US SO SUCCESSFUL. SO, THE WAY I LOOK AT THIS IS, I WANT TO CONTINUE TO GROW MY SUBSCRIBER BASE IN ASIA PAC, MIDDLE EAST, SOUTH AFRICA, VERY EXCITING TO BE THERE. I JUST CAME BACK FROM THERE. I WANT TO REGAIN MARKET SHARE IN THE U.S. I WANT TO WIN NOT YOU BACK BUT I WANT TO KEEP YOU USING YOUR BLACKBERRY, BECKY, WITH A GREAT QWERTY DEVICE AND I WANT TO WIN BACK MARKET SHARE IN THE FULL TOUCH SEGMENT AND THAT'S WHAT THE COMPANY IS GEARED UP TO. THAT'S WHAT WE'RE WORKING TOWARDS, AND THIS QUARTER WAS JUST ONE STEP, YOU KNOW, IN A LONGER JOURNEY THAT THE COMPANY HAS TO GO THROUGH.

SORKIN: THORSTEN, IN SOME OF THOSE MARKETS THAT YOU JUST MENTIONED – ASIA, THE MIDDLE EAST, AFRICA AND ELSEWHERE— THAT YOU ARE SUCCEEDING, PART OF THE OFFERING AND THE REASON FOR THAT IS PRICE. ONCE YOU FACTOR IN BLACKBERRY 10, ARE YOU GOING TO BE OFFERING THE SAME PHONE THAT YOU ARE OFFERING IN THE U.S. THERE? IS THERE A CHEAPER PHONE? HOW DOES THAT WORK?

HEINS: IT'S NOT JUST PRICE ACTUALLY. WHAT IT IS, IT'S THE COMBINATION OF BLACKBERRY MESSENGER ON A DEVICE THAT SITS AT THE RIGHT PRICE POINT, AND THEN WHAT ALSO HELPS THOSE CUSTOMERS TREMENDOUSLY ACTUALLY IS THE NETWORK COMPRESSION IN THOSE NETWORKS. BECAUSE REMEMBER THEY ARE STILL ON 2G OR 3G SO THIS ALL COMBINED TO A GREAT PACKAGE AND THAT’S WHAT ATTRACTS OUR CUSTOMERS IN THOSE REGIONS AND THAT'S THE STRENGTH THAT ONLY BLACKBERRY HAS.

QUICK: THORSTEN, I THINK OF BLACKBERRY AND WHEN THE SMARTPHONES OR WHEN YOU FIRST STARTED SEEING iPHONES, I ALWAYS THOUGHT OK, THAT WAS FOR CONSUMERS BUT BUSINESSES CONTINUE TO USE THE BLACKBERRY BECAUSE THEY TRUST THE SECURITY MORE THAN THEY TRUST THE Iphone AND THAT SEEMS TO HAVE SHIFTED OVER THE LAST COUPLE YEARS. YOU HEAR ABOUT MORE AND MORE BUSINESSES THAT ARE ALLOWING THEIR WORKERS TO CHOOSE iPHONES OVER BLACKBERRY. CAN YOU WIN BACK THE KEY CORPORATE CUSTOMERS AND CAN YOU STOP LOSING MANY OF THOSE PEOPLE TO THE iPHONES?

HEINS: BRING YOUR OWN DEVICE TO WORK IS A TREND THAT IS REALITY. YOU'RE ABSOLUTELY RIGHT. HOWEVER, IN THE REALLY MOSTLY SECURE NEEDED COMPANIES, BLACKBERRY STILL IS THE ONE. BUT WE HAVE TO ADDRESS THE BYOD SEGMENT AND TREND, YOU'RE ABSOLUTELY RIGHT. THE WAY WE DO THIS IS THE NEW DEVICES ON BLACKBERRY 10. WE HAVE A FEATURE THAT IS CALLED BLACKBERRY BALANCE THAT ALLOWS YOU BASED ON THE TECHNOLOGY THAT SITS UNDER THE HOOD OF THAT DEVICE TO RUN REALLY TWO VERY SEPARATE PARAMETERS ON THIS DEVICE, A CORPORATE ONE AND A PERSONAL ONE. AND BECAUSE WE HAVE THIS FANTASTIC OS UNDERNEATH, YOU CAN RUN THEM ON REALLY TWO SEPARATE PARAMETERS. CIOs LOVE IT AND CONSUMERS LOVE IT. BECAUSE THE ONE PROTECTS THE PRIVACY AND THE OTHER PROTECTS THE SECURITY OF THE CORPORATION INFORMATION. BEST OF BOTH WORLDS.

QUICK: SO, WHEN IS THE BLACKBERRY 10 COMING?

HEINS: FIRST QUARTER 2013.

QUICK: JANUARY OR MARCH?

HEINS: FIRST QUARTER 2013.

QUICK: YOU'RE NOT GOING TO GIVE US ANY MORE ON THIS?

HEINS: NOT TODAY.

SORKIN: OKAY. THORSTEN, REAL QUICK, I HAVE ONE LAST QUESTION. WE HAD AN ANALYST ON EARLIER WHO SAID HE WAS SURPRISED YOU HAVEN'T PUSHED MORE ON THE KEYBOARD IN TERMS OF PROMOTING THIS, AND I UNDERSTAND THAT THERE'S THIS TOUCH MARKET THAT YOU WANT TO GET INTO A BIGGER WAY, BUT WHY NOT FOCUS MORE ON THE KEYBOARD GIVEN THAT THAT SEEMS TO BE A REAL STRENGTH?

HEINS: WE HAVE A FULL FOCUS ON THE FULL QWERTY KEYPAD BECAUSE WE KNOW THE BLACKBERRY LOVERS, THE HEART OF THE BLACKBERRY LOVERS, THEY LOVE THE PHYSICAL KEYBOARD. THE MORE COMPLEX SOFTWARE ARCHITECTURE WAS AROUND BEFORE TOUCH DEVICE, SO WE NEEDED TO GET THIS INTO THE LABS OF OUR CURRENT PARTNERS FIRST TO BASICALLY CLEAR IT AND THEN GET THE QWERTY DEVICE THROUGH AS THE NEXT ONE, AND THERE JUST FOLLOWED BY PROBABLY A 30- OR 60-DAY TIME DIFFERENCE. IT DEPENDS ON THE LAUNCH DATES OF THE CARRIERS. SO MAKE NO MISTAKE WE ARE FULLY COMMITTED TO QWERTY.

SORKIN: BUT JUST TO CLARIFY, LIKELY THE TOUCH VERSION WILL COME OUT BEFORE THE NEW 10 KEYBOARD VERSION, IS THAT WHAT YOU'RE SAYING?

HEINS: I THINK THAT'S A GOOD BET, YEP. AND THE REASON IS WHAT WE JUST DISCUSSED BEFORE, BECAUSE WE NEED TO ADDRESS THE BYOD TREND, THE WAY YOU LOOK AT THAT INDUSTRY AND THAT SEGMENT IS, IT IS TOUCH. PEOPLE, CONSUMER ORIENTED AND ENTERPRISES LOVE A FULL TOUCH DEVICE. AND, YOU KNOW, WE HAD TO MAKE A CHOICE AND FINALLY WE DECIDED REALLY TO BRING BOTH VERSIONS TO MARKET VERY, VERY CLOSE TO EACH OTHER.

QUICK: THORSTEN HEINS, THANK YOU VERY MUCH FOR YOUR TIME TODAY.

HEINS: YOU'RE VERY WELCOME.

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