That’s a question that’s being floated around based on an article in The Globe And Mail today:
BlackBerry’s smartphone supplier is moving ahead with plans to end its partnership agreement, raising new questions about whether the Canadian company will soon exit the handset business.
The chief executive of Jabil Circuit Inc. told analysts in a conference call that Jabil is reconsidering how much BlackBerry will contribute to its financial results next year.
“We are in discussions right now on how we are going to wind down the relationship,” CEO Mark Mondello said late Wednesday, breaking with Jabil’s usual practice of declining comment on specific customers.
Jabil is factoring in a combination of income loss and the financial hit that would be felt on the company’s infrastructure, Mondello said.
The manufacturer, which has its head office in St. Petersburg, Fla., said the estimated time for any decision to be made is still uncertain, but that it was likely to happen “in the coming months.”
Well, that’s a big hint that BlackBerry is about to exit the handset business whether it wants to or not. Given that hit has a large inventory that it just wrote down, it seems plausible. The only question is how long before we hear about it publicly.
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This entry was posted on September 26, 2013 at 5:49 pm and is filed under Commentary with tags BlackBerry. You can follow any responses to this entry through the RSS 2.0 feed.
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Is BlackBerry Going To Stop Making Handsets?
That’s a question that’s being floated around based on an article in The Globe And Mail today:
BlackBerry’s smartphone supplier is moving ahead with plans to end its partnership agreement, raising new questions about whether the Canadian company will soon exit the handset business.
The chief executive of Jabil Circuit Inc. told analysts in a conference call that Jabil is reconsidering how much BlackBerry will contribute to its financial results next year.
“We are in discussions right now on how we are going to wind down the relationship,” CEO Mark Mondello said late Wednesday, breaking with Jabil’s usual practice of declining comment on specific customers.
Jabil is factoring in a combination of income loss and the financial hit that would be felt on the company’s infrastructure, Mondello said.
The manufacturer, which has its head office in St. Petersburg, Fla., said the estimated time for any decision to be made is still uncertain, but that it was likely to happen “in the coming months.”
Well, that’s a big hint that BlackBerry is about to exit the handset business whether it wants to or not. Given that hit has a large inventory that it just wrote down, it seems plausible. The only question is how long before we hear about it publicly.
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This entry was posted on September 26, 2013 at 5:49 pm and is filed under Commentary with tags BlackBerry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.