Competition in the high-end cell phone market is getting fierce. The winners are quickly outpacing the losers and shareholders are paying the price.

One of the world’s most highly watched phone manufacturers, Research in Motion (NASDAQ:RIMM), and its Blackberry lineup, is losing ground to competitors like Apple (NASDAQ:AAPL) and Nokia (NYSE:NOK). The proof is in the company’s latest earnings estimates.

Earlier today, RIMM drastically revised its fiscal third-quarter guidance. The company had forecast quarterly earnings per share in the range of $0.89 to $0.97, but today announced significantly lower expectations of just $0.81 to $0.83.

The company blames a slow economy and detrimental changes in exchange rates for the decline, but smart investors will look beneath this financial façade and realize Blackberry has some serious competition.

A Blackberry? That is so 2006

As the predominant first-entrant to the “business-class” phone market, RIMM enjoyed a strong leadership position. It had a recognizable brand and relied on its image to sell its products. But now that Apple has its powerful iPhone with features that blow away any Blackberry and Nokia’s just-introduced N97, RIMM is far from a dominating powerhouse.

In fact, it is merely another player in an overcrowded market. That means the company had better work on its basic business skills. If not, its investors are in trouble.

Ever since the Blackberry hit the market, RIMM’s less-than-stellar management team has had its share of tribulations. I cannot count the number of times the company’s email-delivering capabilities have been shut down. And the recent delay of its two latest models, the Bold and the Storm, only highlight this company has serious internal speed bumps.

Those problems were overlooked when competition was scarce and brand power was carrying the company. But now that the enemy is knocking down RIMM’s fort one brick at a time, the situation is far from attractive.

Right now, RIMM expects its sales to grow by 65%. That is a huge figure investors better not get used to. Just like every other mature company, eventually the days of single-digit growth creep in and profits stagnate.

For proof, just look at Google (NASDAQ:GOOG). The company has reached maturity and growth is incredibly hard to come by. Investors are feeling the pain as shares dropped from over $720 to less than $280 today.

Maturity is overrated

RIMM investors should expect the same. As each quarter of financial results hits the Street, investors are going to flee the company in larger and larger herds. While the rest of the market rebounds from this recession, RIMM will be a laggard.

If you want to make money in this industry, invest in Nokia. It has the best shot at beating its competitors and increasing its market share. Apple is appealing, but is far too brand dependent and directly linked to the consumer. The company’s best days are behind it.

The economy is evolving and repositioning. As it does, a whole new set of winners and losers will emerge. Brands that used to be powerful will crumble, taking unwitting investors with them.

Source: Research in Motion (NASDAQ:RIMM) disappoints once again