RIM Manufacturer To Halt Blackberry Production

Toronto-based original device manufacturer Celestica on Monday announced that it will stop producing hardware for struggling mobile device vendor Research In Motion.

Celestica stated that it will wind down manufacturing services related to BlackBerry devices over the next three to six months, and it expects restructuring charges to be less than $35 million. RIM reported earnings for its fourth fiscal quarter in late March, missing expectations and painting a bleak picture for its first two quarters in fiscal 2013.

The vendor also announced that it would take a $1 billion charge related to unsold BlackBerry device inventory. RIM will not launch its first BlackBerry 10 smartphone until late this year, and industry watchers are expecting stiff competition from Apple’s next iPhone and a variety of new Android smartphones. Some contents from Celestica’s June 18 press release follows below.


“Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced that over the course of the next three to six months, it will wind down its manufacturing services for Research in Motion (RIM).”

“More details about this announcement will be provided as part of the company’s second-quarter results press release and conference call, which are scheduled for Friday, July 27.”

“In addition, Celestica is reaffirming its second quarter financial guidance that was provided on April 24. The company anticipates revenue to be in the range of $1.65 billion to $1.75 billion, and adjusted net earnings per share to be in the range of $0.20 to $0.26.”

Is it only a matter of time before RIM plunges to its final downfall? Or do you think that there is still a slim chance for recovery?

 

Source: Digg

Image: Jamie & Adam Tested

RIM: If You Can’t Beat iPhone and Android, Join Them

BlackBerry maker Research in Motion will soon support iPhones and Android devices. Yes, that’s right. The company is about to run the risk of cannibalizing its own handsets. Yes, that’s right. On Tuesday RIM announced it is launching a mobile device management tool that will allow IT departments to control and secure rival phones running on rival operating systems.

The software tools could signal a lucrative new services strategy for the struggling phone maker — if it plays its cards right. After all, RIM has years of experience developing for the enterprise and strong brand recognition among IT departments. Of course, it runs the risk of cannibalizing its own handset line in the process of successfully supporting competing devices. And there’s yet another hurdle for the company. Once the leader in all things enterprise, RIM is a little late to the “bring your own device” (BYOD) party.

The BYOD movement is growing and has led to a boom in the mobile device management industry, with multiple smaller players vying to secure the growing number of devices being brought into the workplace.

Still, RIM has the right idea. You can’t fight the BYOD movement. And if you can’t beat iPhones and Android devices, the next best thing is to try and make a little money by supporting them. That won’t solve RIM’s bigger problems — coming out with devices that consumers, not just CIOs, want to buy–but it’s a start.

 

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