Morgan Stanley on Research In Motion

Morgan Stanley has published a research report on Research in Motion RIMM and after Jabil Circuit's JBL weak results on handsets. In the report, Morgan Stanley writes, "Our primary change for FQ4 is the assumption that BB buyers drained just 1M devices from existing channel invt'y vs our prior est of 1.5M as we believe the older models, which make up a large part of current inventory, have begun to lose steam vs newer BB7 models. We therefore also est device ASP grows 4% to $301 this qtr from $287 last qtr, unchanged from our prior est's. The result is an est of 10.1M units shipped in FQ4 vs prior of 9.6M still down signif from FQ3's 14.1M." Morgan Stanley maintains its Equal-weight rating on Research in Motion, which closed yesterday at $14.11.