The delay, combined with a dismal performance outlook issued along with the quarterly results, sparked renewed chatter about the break-up of the Canadian tech giant, which has floundered as nimbler competitors claw away at its market share.
"RIM confirmed the BlackBerry 10 smartphones will be delayed until the latter part of calendar 2012. This could be game over for the BlackBerry franchise," analysts at Canadian brokerage National Bank Financial wrote in a note to clients. BlackBerry 10 is the name the company has given to the QNX phones, which RIM had initially expected to deliver in the first quarter.
"We see a high risk that this is too late to turn around RIM's position and believe the risk of further delays is meaningful," Nomura analyst Stuart Jeffrey said in a research note. "Even in the best case, however, it seems unlikely RIM will have large volumes of its BB10 devices on sale within 15 months."
RIM has been counting on the new QNX operating system to make up ground lost to Apple Inc's iPhone and iPad and the slew of devices that use Google Inc's Android software. The delay portends another long year of transition for RIM, allowing rivals to make further in-roads into RIM's market share.
The constant stream of bad news from RIM over the last year has driven its shares to their lowest since early 2004, and it has led to analyst and investor demands for Balsillie and Lazaridis to step down.
"RIM reminds me of a beloved grandparent. You love them, but they are very outdated and sooner or later they will be gone," said independent analyst Jeff Kagan in an email.
"Either the existing CEOs must update their thinking or bring in a new CEO to lead the company out of the darkness and back into the sunshine before it is too late."
Barclay's cut it price target on RIM's U.S.-listed shares to $14 from $16; Citigroup reduced it price target to $12 from $15, and National Bank Financial dropped its price target to $8 from $10.
Research in Motion shares, which have lost almost half their value in the last three months, fell 11.2 percent to $13.44 Friday afternoon on the Nasdaq. The Toronto-listed shares fell 12.1 percent to C$13.89.
