BlackBerry’s manufacturing partner plans for disengagement with the company
BlackBerry is struggling hard and in this time, Jabil Circuit the company’s manufacturing partner is also planning on disengaging with the company. All things D reports that Jabil Circuit is looking to bail from BlackBerry on the basis that the latter’s market value could reflect on Jabil’s business as well. After Apple, which accounts to 18 percent of business to Jabil, BlackBerry is the company’s second largest customer and makes up to 12 percent of its business.
While discussing over the fourth quarter result, Mark Mondello, CEO Jabil Circuit reportedly shared that the company might soon end their relationship with BlackBerry. According to the report, Mondello said, “We are faced with a strong possibility of disengaging with BlackBerry.” The company is now working on the feasible ways to end the partnership, on which Mondello added that “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.”
Though Mondello has not revealed the exact time frame for this disengagement to happen, and has been quoted been saying that “Timelines are fluid,” but also added that “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.”