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One of RIM's Hardware Makers to Stop Making BlackBerries

Article Comments  11  

Jun 18, 2012, 7:39 AM   by Eric M. Zeman   @phonescooper
updated Jun 18, 2012, 7:41 AM

Celestica, an original device manufacturer that has for years built BlackBerries, servers, and other hardware for Research In Motion, will "wind down" its manufacturing services for RIM. The company said in a statement that the transition away from RIM's products will take three to six months to complete, and it expects to take a restructuring charge of less than $35 million. Last month, RIM warned that it will have to write-down $1 billion of inventory of unsold BlackBerry smartphones, which indicates it has a significant surplus of hardware at the moment.

more info at Celestica »
more info at Reuters »

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Comments

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Jarahawk

Jun 18, 2012, 11:41 PM

Sounds more like...

...a jilted lover claiming he broke up with her. RIM apparently wasn't planning to use these guys for BB10 else the charge off would have been significantly higher.
Thats exactly the spin on it that I read on crackberry. RIM is consolidating hardware makers. These guys took the excess in good times. This wasnt their main focus in the beginning from what I understand
Vmac39

Jun 18, 2012, 4:49 PM

Doesn't Sound Good

With so many devices unsold, what are they going to do with them, especially with them trying to push out new devices running Blackberry OS 10?

I guess they could take a smaller lose by offering them to prepaid and smaller regional carriers at a discounted rate. Hell, even the larger carriers could push these devices as a smart phone on pay-as-you-go plans.
The BB10 rollout with its new devices I would assume would be over time and not instantly in the fall. You should see overlap in OS10 and 7 devices as they introduce them.

prepaid, 3rd world markets? all good ideas
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Vmac39 said:
With so many devices unsold, what are they going to do with them, especially with them trying to push out new devices running Blackberry OS 10?

I guess they could take a smaller lose by offering them to prepaid and
...
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I think the unsold devices are mostly Playbook tablets....which have been steeply discounted for a while and are still not moving as quickly as they would like....

But I think the main problem selling handsets is simply the fact that Blackberry ent...
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