rim-stock-dropThe sixth-biggest investor in mobile device maker Research in Motion (RIM) told Bloomberg on Friday that it had sold more than half of its holdings in RIM due to market share loss.

“We are on the way out,” Stephen Stephen Jarislowsky, chairman of Jarislowsky Fraser Ltd., told Bloomberg. “The stake has been reduced by more than 50% or even more.”

Add this to RIM’s stock price plunging about 20% on Friday and RIM appears to be in some serious trouble. The company’s first quarter earnings report yesterday was essentially all bad news: company revenues were below Wall Street estimates, sales of RIM smartphones were down and dwarfed by the iPhone, new products have been delayed, and the BlackBerry PlayBook tablet shipping just 500,000 units during a launch that did not go smoothly.

RIM’s competition, namely Apple and Google, have increased their presence over the last few years in the smartphone world. But RIM, which targets business users more than average consumers, has been slow to keep up with the types of powerful and innovative hardware its competitors offer.

Do you think RIM is finished? What do you think the company would need to do to get back in the game?