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RIM Co-CEOs Displace Blame as Company Burns

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All's not well in Waterloo, Ontario.

Yesterday, Research in Motion reported a 59% drop in second-quarter net income and a year-over-year decline in BlackBerry shipments, which caused a stock freefall in pre-market trading. Currently, the stock is down roughly 20%.

Adding to the depressing report, revenue dropped 10% to $4.17 billion from $4.62 billion and its operating margin is said to have dropped from 21% to 13%. For the second quarter, profits stood at $329 million, compared to $797 million from the same quarter last year. Not only is the PlayBook not selling well, the worldwide market share for the BlackBerry may have fallen into single-digits this past quarter -- according to Asymco analyst Horace Dediu.

"In terms of the competition, 10.6 million units is less than half what Apple or Samsung sold in its prior quarter," Dediu writes. "It's also less than what HTC sold. RIM's volume rank will likely go to fifth place as a smartphone vendor."

And true to form, co-CEOs Jim Balsillie and Mike Lazaridis displaced the blame.

According to the Wall Street Journal, the two Neros blamed BlackBerry's falling numbers on customers who waited for future models. You know, the very same subpar devices that failed to meet carrier approval but were forced into the market so that there was something -- anything -- bearing the RIM name before next year's QNX rollout.

RIM's profits are falling, developers are leaving, jobs are getting sliced, employees are revolting. And yet, Jim and Mike -- once again -- blame outside forces.

What will it take for these two to wake up?

(See also: The iPhone Ain't Cool, Says HTC Exec and The Biggest Droid Bionic Glitch That Every Review Missed)

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POSITION:  No positions in stocks mentioned.