Research In Motion, a formerly prominent technology company, is currently undergoing significant challenges that may lead to its restructuring and revenue decline in the upcoming fiscal year. Analysts, including Morgan Stanley’s Ehud Gelblum, have expressed concerns about the company’s future performance. Gelblum predicts that RIM may fall short of the revenue expectations set by Wall Street, estimating around $7 billion for the fiscal year 2014.


  1. What challenges is Research In Motion facing?
    Research In Motion is facing challenges such as aging devices, delays in product launches, and increasing competition in the smartphone market.

  2. Why did Morgan Stanley downgrade RIM’s stock rating?
    Morgan Stanley downgraded RIM to underweight due to doubts about the company’s ability to maintain its book value and the necessity for significant strategic transformation.

  3. What is Ehud Gelblum’s prediction for RIM’s performance in the next nine months?
    Ehud Gelblum foresees a tough road ahead for RIM, especially in the next nine months, with potential revenue misses and market share losses.

  4. Why is BlackBerry 10 crucial for RIM’s future?
    The launch of BlackBerry 10 is seen as crucial for RIM’s future success, but any delays could prolong the company’s challenges.

  5. What impact could the iPhone 5 launch have on RIM?
    The launch of the iPhone 5 could further impact RIM’s performance, leading to increased market competition.

  6. Why is RIM’s services business considered a valuable asset?
    RIM’s services business is considered a valuable asset, but its profitability could be overshadowed by challenges in the device business.

  7. How does Gelblum suggest RIM should respond to its challenges?
    Gelblum suggests that RIM needs to downsize significantly to adapt to the changing market conditions.

  8. What is the potential future focus for RIM according to Gelblum?
    Gelblum predicts that RIM may become a niche device maker focusing on high-security markets with a reduced workforce.

  9. What are the implications of RIM’s revenue decline for its employees?
    RIM’s revenue decline could potentially lead to significant job cuts, affecting a large portion of its workforce.

  10. What factors contribute to RIM starting to bleed cash in the second quarter?
    RIM’s challenges in maintaining revenue streams and profitability contribute to the company starting to experience financial difficulties.

  11. How does Gelblum envision RIM’s transformation in terms of device production volume?
    Gelblum suggests that RIM may need to significantly reduce its device production volume to achieve profitability in the future.

  12. What does Gelblum’s chart illustrating RIM’s peak and possible future imply?
    Gelblum’s chart outlines the potential transformation of RIM from its peak to a more focused and streamlined entity in the future.


Research In Motion’s current struggles and challenges with maintaining revenue and market share have raised concerns among analysts like Ehud Gelblum. As the company faces intense competition and delays in product launches, it must adapt to the evolving market landscape to secure its future. Gelblum’s recommendations for downsizing and focusing on niche markets highlight the need for strategic restructuring within RIM. To navigate these turbulent times successfully, RIM must prioritize innovation, efficiency, and adaptability. As readers, staying informed about the company’s developments and market trends is crucial to understanding the potential outcomes and impacts on the technology industry. For further insights and updates, visit our website for the latest news and analysis in the tech sector.