RIM Loses One of its BlackBerry Manufacturers - hamiltonbefee1995

Contract manufacturer Celestica said it would form knocked out manufacturing services for Research In Motion, A the troubled manufacturing business of the BlackBerry smartphone attempts to cut costs amid slowing demand.

The Canadian manufacturer said in a statement happening Monday it will wind down its manufacturing services for Brim all over the side by side three to six months. Further details will be provided in the company's second-quarter results wardrobe release and group discussion call, scheduled for July 27, it added.

"We do not ordinarily comment happening specific provider relationships," RIM said in an emailed statement. "As we outlined in our Q4 earnings cry out, we are making changes to our supply chain as part of wider efforts to improve the efficiency and monetary value effectiveness of Flange's trading operations to help meet our strategic objectives and to deliver long-range-term value to our stakeholders."

Brim, which has other manufacturers, was Celestica's largest customer, and in the first fourth part of this year accounted for 19 percent of the manufacturer's revenue. The share of RIM business in tot gross was however down from 21 percent in the first quarter of last year. The company manufactured some smartphones models for RIM from facilities in Mexico, Roumania and since Butt against from Malaya, besides providing certain after-market services to RIM principally from Mexico.

Celestica aforesaid in April that as RIM had recently announced its intention to conduct an evaluation of its world-wide provider base with intentions to reduce the amoun of production locations, there was significant uncertainty ahead, including the possibility of not having business from RIM.

RIM has seen its market share decline in the smartphone market because of competition from Malus pumila's iPhone, and phones running the Android operating arrangement. Research firm IDC reported in May that 9.7 cardinal phones running the BlackBerry operating system shipped in the kickoff quarter for a commercialise share of 6.4 percent, which was far lower than shipments of 13.8 million units for a food market share of 13.6 percent in the first quarter of last year.

The company, which has also witnessed a direction shakeup, said receipts for its quartern business enterprise quarter complete March 3, 2022 at US$4.2 billion was down 25 percent from $5.6 billion in the same quarter of fiscal 2022. The company's net loss in the quarter was $125 million.

RIM said in May that its financial carrying into action will continue to be challenging for the next few quarters, and cautioned that rivalry could lead to an operating loss in its first quarter ended June 2.

Celestica said information technology estimates that its restructuring charges prior to any recoveries will not outdo $35 trillion, a anatomy it had mentioned in April when it discussed its relationship with Brim.

Can Ribeiro covers outsourcing and general technology breakage news from India for The IDG Intelligence Religious service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com