Analysts from at least eight securities firms have cut their ratings on RIM after the Waterloo, Ontario-based company reduced profit forecasts late last month, adding to evidence that the maker of the BlackBerry is struggling to compete against Apple and Google in the smartphone market.
Lazaridis' 'Technological Brains'
Sameet Kanade, an analyst at Northern Securities Inc. in Toronto, has suggested the company should scrap its dual-CEO structure, elevating co-CEO Mike Lazaridis over Jim Balsillie.
"When the momentum was in their favor, not a lot of attention was paid to the disconnect of a co-CEO structure, but with it, accountability is divided, or is not focused on one person," Kanade said. "Right now, they're facing technological challenges and Lazaridis, the technological brains, should be running the whole show."
RIM's share of global smartphone sales fell to 13 percent in the first quarter, from 20 percent a year earlier, Gartner Inc. said. Share for Google's Android more than tripled to 36 percent from 9.6 percent and Apple's iOS rose to 17 percent from 15 percent. RIM stock has plummeted 27 percent in the past year.
Marisa Conway and Tenille Kennedy, spokeswomen for RIM, didn't respond to requests for comment.
"There's market impatience with anyone who is not No. 1 in their area," Saffo said. "With all the technology shifts, the degree of uncertainty has increased dramatically. Executives have never had more pressure on them."