RIM downgraded as Apple set to unveil iPad2

TORONTO, CANADA: Shares of BlackBerry maker Research In Motion (RIM) have retreated after two brokerages downgraded the Canadian wireless giant in view of the stiff competition from Apple's iPhone and Google Android devices.

RIM stock closed Tuesday at $62.12, slipping about two per cent immediately after its downgrading by CSLA brokerage to "underperform" and by Gleacher & Co to "neutral" for 2011.

Its shares had registered big gains last weak after RIM touted its yet-to-be-launched PlayBook tablet as a better performer than Apple's iPad.

The RIM downgrading also came amid reports that Apple is set to release a new version of the iPad early next year even before the BlackBerry's PlayBook hits the US market in the first quarter of 2011.

According to Digitimes, Taiwan's Foxconn Electronics, which makes Apple products, will ship the iPad2 "within the next 100 days with initial shipments to reach 400,000-600,000 units".

Digitimes said: "The iPad 2 will ship as soon as the end of February in 2011. Apple originally planned to start mass production in January, but because the device's firmware is currently still in testing, Apple has been postponing the schedule."

After sinking below $50, RIM stock rose last week after its intense video campaign to promote the PlayBook tablet and positive reports about the Torch 9800 smart phone.

The RIM smart phone, which till last year dominated the US market, has been overtaken by both the iPhone and Google Android devices.