[the_sleuth]

Now we are seeing the aftermath:

Published on September 26, 2013
by John Paczkowski

BlackBerry�s ongoing collapse is becoming a serious drag on the company�s manufacturing partner Jabil Circuit. So much so that Jabil considering ending it business relationship with the struggling smartphone pioneer.

Discussing Jabil�s fourth-quarter results during a call with analysts Wednesday, CEO
Mark Mondello said that BlackBerry�s downward spiral has given him reason to reconsider his company�s partnership with it. BlackBerry is Jabil�s second largest customer overall, making up 12 percent of its business (Apple comprises 19 percent)
and its gruesome finances and uncertain future are already negatively impacting Jabil�s business.

�We are faced with a strong possibility of disengaging with BlackBerry,� Mondello said. �Our team has worked diligently over the past few days to comprehend the recently announced changes. � We�re in discussions right now on how we�re going to wind down the relationship.�

Mondello wouldn�t say how quickly that disengagement would occur, but his remarks suggest this is something Jabil is clearly looking to resolve fairly soon.

�Timelines are fluid,� Mondello said. �But directionally, we have a path, a path that we believe is prudent and in the best interest of our shareholders, a path that also supports the needs of BlackBerry. We plan to take a restructuring charge, move swiftly and decisively and mitigate the impact to FY �14 as best we can.�

It�s not going to be pretty, though. Jabil�s relationship with BlackBerry is a large-scale one that�s taken significant infrastructure and labor to support. Winding it down is going to take some doing, and inevitably some layoffs as well.

Asked to comment on Mondello�s remarks, BlackBerry, unsurprisingly, didn�t have much to say. �We value our business partner relationships around the world and we remain committed to working collaboratively with them to deliver industry-leading quality products and services,� a company spokesman told AllThingsD.

BlackBerry Manufacturing Partner Jabil Circuit Looking to Bail - John Paczkowski - Mobile - AllThingsD

[birdman_38]

Does this mean BlackBerry is not paying the bills? I don't see the advantage by stating you're gonna benefit by dropping your second largest client.

[AnimalPak200]

Nah, probably means they reduced orders to below the threshold necessary for the manufacturer to profit over the cost of maintaining the BlackBerry-specific capabilities/staff.

Basically, as they shrink, they will continue losing economies of scale.

Posted via CB10

[trsbbs]

Not good. Another straw on the pile.

Posted via CB10 on my Verizon Z10. 10.2.0.1725

[QuickDime]

The wheels falling off as we speak.... I honestly can't watch this too much more. Another Canadian technology company implodes!

Swiped On My Zed10

[undone]

Shouldn't be a surprise based on the write down of Z10s.

[playbookster]

And yet another overreaction by cb forum members and the tech media.

Posted via CB10

[E92Vancouver]

Does this mean BlackBerry is not paying the bills? I don't see the advantage by stating you're gonna benefit by dropping your second largest client.

It means the Blackberry production line is sitting idle because the phones are not selling. Jabil has limited warehouse space that has equipment tooled to make Blackberries. If the Blackberry production line is stopped, Jabil would want to get rid of Blackberry as a client so that they can re-tool and make something else. If Jabil is not making something, they are losing money.

[JasW]

And yet another overreaction by cb forum members and the tech media.

Posted via CB10

What reaction do you believe would be appropriate given that this is just the latest in what seems like an unending stream of bad news?

Perhaps covering ones ears and yelling LA LA LA -- I CAN'T HEAR YOU -- LA LA LA?

[ifarlow]

And yet another overreaction by cb forum members and the tech media.

So you don't consider the impending departure of one of the manufacturers that makes BlackBerry devices a big deal? Interesting. Please explain what the proper reaction to this news would be so that we can all do our part and toe the line.

[SK122387]

What reaction do you believe would be appropriate given that this is just the latest in what seems like an unending stream of bad news?

Perhaps covering ones ears and yelling LA LA LA -- I CAN'T HEAR YOU -- LA LA LA?

It's just common sense that something like this would happen.

If not as many people are coming to my bar anymore, why would I continue to order more and more kegs of beer?

BlackBerry not manufacturing as much/at all given the overstock of devices is a good thing. Their manufacturing partner needs to look out for themselves too, so if ending their relationship with BlackBerry is what they have to do, then so be it.

There are other manufacturers out there, and it's not like BlackBerry has a bunch of new devices on the way for us to be concerned about not launching.

[Aljean Thein]

No. Big. Deal.

Posted via CB10

[pogo007]

Well it's kind of funny seeing everyone being so negative about BlackBerry. These people remind me of the losers that were saying Apple was going to go bankrupt in 1997. Everyone was laughing back then at my Mac then. Look where they are today. You can come and give me all that negative bull sh*& when the headlines read "BlackBerry closes their doors for good" until then find something good or constructive to talk about.

[Roo Zilla]

Well it's kind of funny seeing everyone being so negative about BlackBerry. These people remind me of the losers that were saying Apple was going to go bankrupt in 1997. Everyone was laughing back then at my Mac then. Look where they are today. You can come and give me all that negative bull sh*& when the headlines read "BlackBerry closes their doors for good" until then find something good or constructive to talk about.

Palm fans were saying the same thing a couple years ago...... Some are still saying the same thing.

[russworman]

I'm pretty sure that they have more than one manufacturing partner. While disappointing, it is not completely unexpected.

I personally feel better about BlackBerry's prospects than I did about Chrysler's when they went through bankruptcy. At one point they had a ghost staff at their headquarters and idled plants for months. They have forged a very solid comeback against all odds.

As a side note, I would love to see BlackBerry do some ads like Chrysler has done... Halftime in America was great as was the Heritage commercial....

Posted via CB10

[David Murray1]

Is this Jabil what's-its-name the only company in the world that BlackBerry could use to manufacture handsets? No? Well then, it's not the end of the goddamn world is it.

[ifarlow]

Wow. The issue at hand is not so much the loss of this particular manufacturer as much as its the very public display of continued eroding confidence in the future of BlackBerry as a brand. Let's take this a bit further... If BlackBerry ends up shopping for another manufacturer to replace this one, wouldn't it be reasonable that new manufacturers be a bit leery in the wake of Jabil Circuit pulling the plug?

Regardless, take a step back for just a minute and consider all of the more recent events of BlackBerry in aggregate. BlackBerry has been struggling for many years now, and this continued hardship will eventually take its toll (if it hasn't already). To continue to brush off these events with hands over eyes and fingers in ears is just absurd.

[Bold_until_Hybrid_Comes]

People the numbers are in. Open your eyes. It's over for BlackBerry. I had a lot of interest in BlackBerry 10 as well, but there comes a time where you have to look at the facts and acknowledge them. Any one that thinks this is like Apple, and not like palm is delusional. The petty 2.5 billion in the bank is not even worth mentioning when you are bleeding chips this fast.

[playbookster]

People the numbers are in. Open your eyes. It's over for BlackBerry. I had a lot of interest in BlackBerry 10 as well, but there comes a time where you have to look at the facts and acknowledge them. Any one that thinks this is like Apple, and not like palm is delusional. The petty 2.5 billion in the bank is not even worth mentioning when you are bleeding chips this fast.

Can I ask why you still post here? If they are dead there must be nothing to talk about. You seem to have moved on but yet stick around here encourage negativity that not everyone wants to read. Frankly it's kind of annoying. I'm sure you have an android or iPhone so you could always go to one of those fansites and join their happy clubs rather than making us all miserable.

Posted via CB10

[QuickDime]

People the numbers are in. Open your eyes. It's over for BlackBerry. I had a lot of interest in BlackBerry 10 as well, but there comes a time where you have to look at the facts and acknowledge them. Any one that thinks this is like Apple, and not like palm is delusional. The petty 2.5 billion in the bank is not even worth mentioning when you are bleeding chips this fast.

This.

I have been a die hard / until the wheels fall off, there is no postive way to spin this! The end is here, wheels are flying off at every corner! Tomorrow's final report will probably be the final nail.

People are acting like we're/I am happy about this....

Swiped On My Zed10

[Bold_until_Hybrid_Comes]

Can I ask why you still post here? If they are dead there must be nothing to talk about. You seem to have moved on but yet stick around here encourage negativity that not everyone wants to read. Frankly it's kind of annoying. I'm sure you have an android or iPhone so you could always go to one of those fansites and join their happy clubs rather than making us all miserable.

Posted via CB10

I use a Z10 that I got before you got your BB10

[Bsbudd]

Well it's kind of funny seeing everyone being so negative about BlackBerry. These people remind me of the losers that were saying Apple was going to go bankrupt in 1997. Everyone was laughing back then at my Mac then. Look where they are today. You can come and give me all that negative bull sh*& when the headlines read "BlackBerry closes their doors for good" until then find something good or constructive to talk about.

This was a very different time with almost no competition. Apple has a lot of different product offerings and like it or not, Steve Jobs was a marketing genius something Blackberry does not have. Since Steve died have you seen any real movement at Apple? No. All the products they are offering right now were planned years ago when Steve was still around.

From what I have seen year after year, the constant promises, failure to launch products and missing timelines Blackberry will have to clean out all the management and bring in new blood. This will take time and resources which Blackberry doesn't have in this fast moving game they are playing in.

With all the recent news the brand "Blackberry" is severely damaged and I personally believe they have a very very small chance to recover even after they go private. Time will tell.

[David Murray1]

Stevie wasn't really a genius but everyone thought he was so ... there you go.

[Bsbudd]

Stevie wasn't really a genius but everyone thought he was so ... there you go.

I forgot I was on a Blackberries Fan website and we shouldn't give credit very credit is due. You are right. What was I thinking.

[cgk]

Stevie wasn't really a genius but everyone thought he was so ... there you go.

Yeah he's no Tommy Heins... by the way where is Tommy?