The makers of the famous Blackberry, Research in Motion Ltd., said on Thursday that they have slashed their sales forecast for this quarter because they saw a significant decline in their sales. They further said that they are selling cheaper and less phones than they originally expected.

Jim Balsillie, co-CEO of the company said that the decrease in sales is due greatly on the delay of the release of their high-end phones. He also confirmed that the company is transitioning to a new line of phones.

In a conference, Balsillie told reporters that the company is in the process of shifting over to a new product line. The co-CEO said he, along with the rest of the company, is very excited for the upcoming changes. They are committed to strategies that will yield long term results.

This is the second hit on their stocks in a month. On the 24th of March they announced that they are expecting total sales of $1.47 to $1.55 per share for this quarter. That is lower than what analysts predicted earlier this year. On Thursday, they further lowered the range to $1.30 to $1.37. The company also confirmed that they will also lower the number of shipment to around 13.5 million.

Balsillie promised that the company will amaze everyone during their Orlando, Florida World Conference. Analysts take Balsillie’s word as BlackBerry has been strongly trusted for providing email devices. However, they are still yet to keep up with Apple’s iPhones and other Android phones.

The Microsoft Corporation had just recently completed their Windows 7 Phone software. This new software will be formally launched to the public on October 11. By November, Windows 7 is expected to be installed on several handsets that are believed to compete with Apple and Google Android smartphones.

Samsung and HTC Corp, as well as other groups of smartphones are expected to release Microsoft-based phones this coming holiday season.

The employees of Microsoft Corp gathered around last month at its Redmond, Washington campus. This marked the completion of their software and revealed how they really want to get themselves back in the fiercely competitive phone market.

However, it is still a question whether the Windows 7 is good enough to turn the iPhone obsolete in the market.

According to Bryan Keane, analyst for the Alpine Mutual Funds that holds the shares of Microsoft, the product cannot just outrun everything that is out in the marketplace. However, Windows 7 might just be better than the other Windows platform.

Microsoft just missed a generation with their last phone operating system, Windows Mobile, admitted by Steve Ballmer, the Microsoft Chief Executive. The Windows Mobile struggled its way in the phone market while iPhone and Android reigned well with their touch screens and fresh applications.

Today, Microsoft ranks fourth in the fast-growing operating systems for the smartphone market in the U.S. It is behind Blackberry-maker Research in Motion Ltd, Apple and Google. From comScore research firm, Microsoft has a share of less than 12 percent.