(Reuters) - RIM's fight for subscribers with Palm and Apple -- as well as Nokia and other handset makers -- is taking place against the backdrop of a sharp economic downturn. Companies and consumers alike have tightened their budgets.

Price is a powerful weapon for manufacturers to use against the competition in a bad economy. But at the same time, rolling out attractive new devices has become critical as feature-rich smartphones gain status as hot, must-have accessories.

"You're only as hot as your latest device. RIM recognizes that," Levy said. "Five years ago, you couldn't have said that about the company, but now they're probably one of the most aggressive companies in terms of bringing new hardware to market."

Earlier this week, RIM added another smartphone to its BlackBerry lineup as it aims to win market share among both executives and mainstream consumers.

The new model, known as the BlackBerry Tour, falls somewhere between the BlackBerry Curve, which has proved popular with consumers, and the BlackBerry Bold, which RIM has aimed at high-end corporate users.

RIM shares, which closed Thursday at $76.55 on Nasdaq, fell more than 5 percent to $72.70 in post-market trade. On the Toronto Stock Exchange, the shares finished 37 Canadian cents lower at C$86.79.

($1=$1.13 Canadian)

(Reporting by Wojtek Dabrowski; editing by Frank McGurty)