Jabil Circuits finds itself suffering because of the disaster at Blackberry

BlackBerry’s financial woes aren’t a problem for BlackBerry alone. One of the company’s manufacturing partners, Jabil, has begun warning its investors that it’s likely to lose its second largest customer. “We are faced with a strong possibility of disengaging with BlackBerry,” Mark Mondello, CEO of Jabil, reportedly said in an earnings call Wednesday. “We’re in discussions right now on how we’re going to wind down the relationship.”

BlackBerry reportedly accounts for 12 percent of Jabil’s business, second only to Apple’s 19 percent. Jabil appears to be actively looking to end its relationship with BlackBerry, though it isn’t clear if Jabil is planning to intentionally cut off the struggling smartphone maker, or if it’s just setting up plans to mitigate the impact of its seemingly inevitable loss of a customer. The former option could only make BlackBerry’s current situation worse, though Mondello reportedly said that his company is moving down “a path that also supports the needs of BlackBerry.”

Anyone hoping to hear more from BlackBerry about its current situation will unfortunately have to wait. Though it had planned to speak to investors during its own earnings call tomorrow morning, the call has now been cancelled in light of it receiving a buyout offer. Its financial results will still be released tomorrow morning, however, giving what could turn out to be one of the last looks into BlackBerry’s financials before it goes private.

So watch this space for further Jabil plant closures.

Silas Berry  – AsiaConsult http://www.asiaconsult.org – Nov 2013

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