RIM shares tumble again after Nokia warning

* RIM shares drop on concern it could follow Nokia’s path

* BlackBerry maker’s stock hits five-year low in Toronto

* Jefferies analyst raises red flag on margins, prices

TORONTO (Reuters) – Shares of Research in Motion extended a two-day slide on Wednesday on concerns that a profit warning from Finland’s Nokia could presage more difficulties for the Canadian maker of the BlackBerry smartphone.

As with Nokia, RIM is facing a growing competitive threat from Apple Inc’s iPhone and devices based on Google’s Android technology.

Shares of RIM, which fell 4.4 percent on Tuesday, dropped to a fresh five-year low on the Toronto Stock Exchange on Wednesday, after Jefferies analyst Peter Misek wrote that the Nokia warning does not bode well for RIM.

“We have reviewed RIM’s margins and believe that the handset business could be much lower margin this quarter and going forward as average selling prices collapse,” said Misek in a note to clients.

“What is is happening to Nokia could be a precursor to what could happen to RIM,” said Misek.

Shares of RIM fell 5.4 percent at C$39.11 on Wednesday on the Toronto Stock Exchange. The company’s shares also fell to a two-year low on the Nasdaq, down 6 percent at $40.25.

RIM played the third-biggest role of any single stock in leading the Toronto Stock Exchange’s S&P/TSX composite index lower on Wednesday.

Investors also dumped Nokia shares on Wednesday, taking them to their lowest in more than 13 years after a profit warning a day earlier raised fears the handset maker may never regain its shrinking market share.

Nokia said Tuesday mobile phone sales in the second quarter would be substantially below a previous forecast and abandoned its full-year outlook, blaming difficult conditions in China and Europe.