RIM stock plummets: Should this cause concern for the tech industry?

Jim Balsillie, joint CEO of Research in Motion, the BlackBerry maker whose stock prices plummeted on Friday. (Chris Young/Reuters)

Shares for Research in Motion Ltd. are taking a dive today, after the company posted disappointing earnings figures Thursday.

The Waterloo, Ont.-based BlackBerry manufacturer has seen a significant drop in revenue in the first quarter of 2011, and the weak sales figures are affecting RIM's rocky performance on the TSX.

RIM shares lost up to 21 per cent Friday on the TSX, as major investors moved to sell off their holdings.
 
"We believe the smartphone sector is moving into a new paradigm of lower margin pricing as Android handsets attack the high, mid and low-end market segments," wrote, Kris Thompson, and analyst at National Bank Financial. "We do not expect the company's gross margins to rebound."

Prior to stock dip, Research In Motion announced it plans to cut jobs as it works to roll out a new generation of products to stay competitive.

Do you think RIM can rebound and compete in the current market? Why or why not? Should the company's recent sales dip cause concern for the tech industry?



(This survey is not scientific. Results are based on readers' responses.)