Research-In-Motion, the company which made smartphone devices a popularity with its BlackBerry handsets, has been declining. For now, there seems to be no revival in sight and the company has been cutting down on the number of its employees as well as its other costs over time.
Given the losses that the company has run into, RIM recently announced that it will be cutting down $1 billion from its operational costs before the end of 2013. This is, in a way, an inevitable move for RIM since the sales of BlackBerry handsets are persistently on the decline and without selling these handsets, the company is no good.
One of the new casualties, as a result of the decision of cutting operational costs, is going to be RIM’s long-time manufacturing partner Celestica. Celestica has been producing BlackBerry handsets for RIM for quite some time and RIM’s handsets accounted for a whopping 19% of Celestica’s revenue during the last quarter.
However, since RIM’s inventory is heaping without the handsets flying out, it was only a matter of time before it cut down on the manufacturing volume. Within the next three to six months, Celestica will entirely cease the production of BlackBerry handsets and wouldn’t be producing any more of them.
A statement issued by RIM on this new development says, “We are making changes to our supply chain as part of wider efforts to improve the efficiency and cost effectiveness of RIM’s operations to help meet our strategic objectives and to deliver long-term value to our stakeholders.”
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