Research In Motion, the company behind the BlackBerry line of smartphones and tablets was dealt a blow on Monday when financial firm Morgan Stanley downgraded the company’s forecast, a move that led to a 7.7 percent drop in the firms stock pricing.
RIM shares were down to $9.11 on the Nasdaq at the close, a 75 percent drop from the company’s opening pricing. That pricing is actually an increase on the days $9.01 low. In 2008 RIM reached its stock high before falling 94 percent over the last four years. Blackberry market share in the meantime continues to slip at iOS, Android and to a lesser extend Windows Phone OS devices continue to push their way into the hands of traditional Blackberry users.
RIM hopes to turn around its fortunes with the BlackBerry 10 mobile operating system although what that OS will offer has yet to be seen.
In the meantime Ehud Gelblum of Morgan Stanley predicted that shares at the embattled research firm will eventually fall to $7 per share. Gelblum blames aging hardware and software platforms that have failed to resonate with consumers and the company’s traditional business users.
Earlier in the week rumors began circulating that RIM might begin spinning off certain aspects of its business in order to slim down and focus on the company’s core product base. The company’s main focus now appears to be its handset business.
RIM executives have shot down rumors that the company is planning to sell itself to a larger competitor or offer the sale of some patent holdings. RIM could fetch billions of dollars to the right seller as its email system is still considered a very lucrative and secure system.