Celestica Hit by RIM's Dwindling Popularity

By Bizclik Editor

 

Toronto-based Celestica announced today its plans to wind down manufacturing services for Research in Motion over the next three to six months.  Said to be a part of RIM’s plans to cut down on manufacturing and supply chain costs, Celestica plans to work closely with the BlackBerry maker throughout the transition.

Due to this manufacturing wind down, Celestica will restructure its operations—a cost that is not to exceed $35 million. Although little information has been released, Celestica will announce more on what this means for the company this upcoming Friday at its second quarter results announcement.   Celestica did release its anticipated second quarter revenue results expected to be in the range of $1.65 to $1.75 billion.

This partnership end shows RIM is still struggling to survive throughout this year. With the announcement of the discontinuation of its BlackBerry PlayBook 16GB version earlier this month it seems RIM is going out of its way to cut costs while focusing on the few money making products it has left.

 

SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:

Click here to see the latest issue of Business Review Canada

 

But there’s not all bad news for RIM. The company showed off its highly anticipated (and long awaited) BlackBerry 10 platform at its 2012 BlackBerry World Conference. RIM states that it is still on track to launch its BlackBerry 10 platform in the second half of 2012.

“RIM is going through a significant transformation as we move towards the BlackBerry 10 launch, and our financial performance will continue to be challenging for the next few quarters,” said RIM President and CEO Thorsten Heins in late May.

Will we see fruitful financial results from RIM’s cost cutting techniques or are these plans coming just a little too late? Additionally, many are still skeptical on how the BlackBerry 10 will perform within the highly competitive smartphone market and whether it will be RIM’s saving grace.  What’s definite is RIM will have to fight hard in 2012 to avoid what some see as the company’s inevitable end. 

Share

Featured Articles

Sustainability, ESG, net zero in focus at must-attend event

Sustainability takes centre stage at two-day hybrid conference featuring thought leaders covering circular economy, scope 3, ESG, B Corp, net zero, DE&I

Must-attend sustainability events for executives in 2022/23

Discuss and debate the most pressing issues around sustainability at these nine executive events – from London to Abu Dhabi, San Diego to Singapore

Meet the CEO on a mission to nurture women leaders in Africa

The argument for women leaders in Africa is compelling, yet numbers are small. But one female leader is on a mission to change that – Awamary Lowe-Khan

BCG's Daniel Weise on supply chain and procurement strategy

Leadership & Strategy

Flexible work perks heat up as the war on talent rages

Human Capital

Meet the COO: Former Israel Defense Force cyber lead Parnes

Technology & AI