RIM may be throwing in the towel on its PlayBook tablet, according to a note from one analyst on Monday.

[ad#Google Adsense 300×250 in story]RBC Capital Markets Managing Director Mike Abramsky said in a note to clients that “Research In Motion is possibly planning to stop production of the BlackBerry PlayBook’s Wi-Fi model,” reports BGR.com.

It’s no secret that the PlayBook is in trouble. The press has hated the PlayBook since the tablet was first released, noting missing features like its lack of native email. Things haven’t gotten any better for RIM.

Sales targets for the PlayBook were slashed from an expected 2.4 million units to just 800,000 units in late June.

During its fiscal first quarter, RIM announced shipments of 500,000 PlayBooks. I’ll stress again, those are shipments from RIM to the channel — that doesn’t mean that they actually sold all of those tablets. For all we know, they could be sitting on retailer’s shelves.

As a result of lower than expected BlackBerry sales in the first quarter, RIM also began lay offs at the company.