BlackBerry's slow dive into oblivion is becoming a huge problem for the company's manufacturing partner, Jabil Circuit. After BlackBerry failed spectacularly to meet sales expectations, and followed by announcing its exit from the consumer market, Jabil is reconsidering its business relationship with the Waterloo company, which earlier this week accepted a buyout bid from Fairfax Financial.
During a call with analysts this week, Jabil CEO Mark Mondello said BlackBerry's poor performance is having a negative impact on the manufacturing company's bottom line, prompting Mondello to consider a breakup; it seems Mondello recognizes how toxic BlackBerry has become over recent years. BlackBerry is currently Jabil's second-largest customer, comprising 12 percent of its business; Apple, meanwhile, makes up 19 percent.
"Our team has worked diligently over the past few days to comprehend the recently announced changes… We're in discussion right now on how we're going to wind down the relationship," Mondello said to a group of analysts. Mondello didn't say how quickly the relationship will be ended, but he did hint that it could be fairly soon. "Timelines are fluid," he said.
In Mondello's eyes, a breakup is in the best interest of Jabil and its shareholders, and will also support "the needs of BlackBerry." Be that as it may, breaking off with such a large partner will certainly have an impact on Jabil's workforce, though there's no indication if layoffs are planned. BlackBerry merely said it values its partner relationships in a statement to AllThingsD.