BlackBerry Might Lose Its Manufacturing Partner

Things haven’t been going well for BlackBerry, and it seems that they’re likely to get worse. The ailing smartphone manufacturer might end up losing its manufacturing partner, Jabil Circuit. BlackBerry accounts for 12 percent of Jabil’s business, second only to Apple which accounts for 19 percent. However, its CEO Mark Mondello reportedly said during a call with analysts that they’re faced with “a strong possibility of disengaging with BlackBerry,” and that after the recently announced changes, Jabil is in discussions right now to “wind down the relationship.”

BlackBerry recently announced that it is reducing its device roadmap from six to four models. It also warned of a $1 billion write down in unsold inventory. The company was scheduled to make an earnings call on Friday and talk to investors about its situation, but the call has been cancelled in light of the $4.7 billion takeover bid that it has received a few days ago. These are some of the changes that might be compelling Jabil Circuit to reconsider its relationship with the once mighty smartphone manufacturer. Though its not like such a large-scale relationship can just end in a snap. There needs to be a path, and Mondello reportedly has one that is not only in the “best interest” of Jabil’s shareholders but “also supports the needs of BlackBerry.” There has been no comment on the possibility of losing its manufacturing partner by BlackBerry.

Adnan Farooqui
Categories: General
Tags: BlackBerry