AAPL Stock: 117.81 ( -0.22 )

Printed from

Device manufacturer Celestica ceases RIM production

updated 09:00 pm EDT, Mon June 18, 2012

Three to six month cessation, little impact on company

Toronto phone manufacturer Celestica announced Monday that it is ceasing production of BlackBerry-based devices by embattled producer Research in Motion. Celestica is tapering off production over the next three to six months, and will continue to work in the short term assessing RIM's future supply chain strategies.

Celestia expects a restructuring charge due to the change in direction of less than $35 million prior to any recoveries. The company expects little change to it's quarterly financial earnings guidance with revenue expected in the $1.65 billion to $1.75 billion range. Further information in Celestica's departure is expected with its second quarter press conference on July 27.

RIM reported its fiscal earnings in late March for the fourth fiscal quarter, missing lowered expectations. A $1 billion charge related to unsold inventory will be taken by RIM in the next quarter.

by MacNN Staff



Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented