TORONTO (Bloomberg) - Canadian stocks retreated as Research In Motion Ltd. plunged the most since 2004, after the e-mail phone maker's profit and forecast missed analysts' estimates because of competition from Apple Inc.'s new iPhone.

Royal Bank of Canada paced a drop in financial shares as Goldman Sachs Group Inc. forecast additional credit-related writedowns for US rival Citigroup Inc. Bullion mining companies such as Barrick Gold Corp. rose on a surge in the price of the precious metal.

"With a stock like RIM, you don't have a lot of room for error," said Stephen Carlin, who helps manage about $3.55 billion as co-head of Canadian equities at Toronto-based KBSH Capital Management Inc. "The banks are not out of the woods yet. There's nervousness in the market generally."

The Standard & Poor's/TSX Composite Index fell one percent to 14,292.14, slipping for the second time in three days. Canada's main stock index has still risen 3.3 percent in 2008, setting a record last week, on soaring energy, grain and metals prices.

Research In Motion (RIM) dropped the most since May 2003, falling 13 percent to C$125.14. The maker of the BlackBerry handsets said yesterday that second-quarter profit will be as low as 84 cents a share. That missed the average prediction by analysts of 92 cents, according to a Bloomberg survey.

First-quarter net income more than doubled to $482.5 million, or 84 cents a share. Sales also more than doubled, to $2.24. Analysts had predicted earnings of 85 cents a share on sales of $2.27 billion.

RIM is spending more on marketing and product development amid mounting competition from the iPhone and devices such as Palm Inc.'s Centro. RIM became Canada's top company by market value this year after the stock tripled on soaring profit. It trades at 33 times estimated 2009 earnings.

"It's a short-term investment for longer-term profitability." said Mr. Carlin, whose firm holds RIM shares. "Earnings growth continues. We view this as a buying opportunity."

Citigroup, the bank that has posted the biggest losses from the collapse of the US mortgage market, may take an additional $8.9 billion in net writedowns in the second quarter, Goldman Sachs said.