Former RIM Supporter: 'Split the Berry'

A formerly bullish Research in Motion analyst is calling for the ailing BlackBerry maker to split the company into two parts: a phone business and a network operations business.

"RIM's organization, like its handsets, needs modernization," wrote RBC analyst Mike Abramsky in a note to investors on Tuesday."

Abramsky said that RIM's upcoming new operating system, QNX, held lots of promise, but has suffered from gross mismanagement and deserves its own division to milk the platform's potential. To wit: RIM's half-baked, QNX-based BlackBerry Playbook has suffered recalls, poor reviews, and aggressive iCompetition since launching in April.

"QNX is not a panacea," he wrote. "Although QNX appears strong, if QNX doesn't work, or further mis-execution undermines RIM's turnaround, then RIM will be left without a "plan B."

"Split the Berry," Abramsky declared.

RIM's investors seem to agree. During an annual general meeting held in Vancouver on Tuesday, shareholders heckled co-CEOs Mike Lazaridis and Jim Balsillie, who were sitting on stage.

"You're letting Apple and Android eat your lunch," said one investor, according to Reuters. "You're an innovator, but you're not good at selling what you make."

In response, RIM is reportedly releasing seven new smartphones with BlackBerry 7, most likely the last lot before it switches to its long-delayed QNX platform. PCMag mobile analyst Sascha Segan calls these devices "a distraction" from RIM's mis-management.

Earlier this month, investors agreed to give the company six months to revive its share price (which is down 60 percent this year) before formally proposing to strip its co-CEO's of their titles. The group first proposed this plan in June but agreed to withdraw it when RIM said it would investigate whether or not co-CEOs Mike Lazaridis and Jim Balsillie should be able to keep their titles. In the past, the two have argued that the titles help broker overseas deals.