Updated from 9:16 a.m. EST

Shares of BlackBerry maker

Research in Motion

(RIMM)

came off their worst level Wednesday and approached the flat line despite a profit warning that had initially rattled investors in the technology sector.

After being down more than 5% early, RIM was recently lower by just 1.3% at $36.84. Still, the stock is well beneath its 52-week high of $148.13, and when trading began it breached its worst level of the past year, falling to $35.09.

The

Nasdaq Composite

took a hit out of the gate, but the index rebounded to trade up 1.6% to 1473.

Despite the recovery, the news from

RIM

was another signal that consumers are becoming more selective about their purchases amid the downturn in the U.S. RIM said it was forced to cut its third-quarter revenue and earnings forecast because of the strong dollar and the weak U.S. economy.

As a result, the Canadian handheld-device maker now expects adjusted earnings of 81 cents to 83 cents a share for the quarter ended Nov. 29, down from its previous projection of 89 cents to 97 cents. On average, analysts had been calling for earnings of 91 cents a share.

Following the new guidance, Goldman Sachs lowered its price target on RIM to $62 from $68 and removed it from the firm's Americas Conviction Buy List. However, it maintained a buy rating on the stock.

Shares of other phone and device makers were mixed.

Palm

(PALM)

was dropping 17.8%, while

Apple

(AAPL) - Get Report

was up 1.2%.

Nokia

(NOK) - Get Report

was losing 1.8%.

Ericsson

(ERIC) - Get Report

was gaining 5%, and

Motorola

(MOT)

was slipping 0.7%.(

Photo gallery: Smart Phones

)

This article was written by a staff member of TheStreet.com.