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    Article: BREAKING: Celestica to Cease Manufacture of RIM Devices

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    Not sure what to make of this. There's all the buzz about BB10 and the ensuing device.

    It's probably just that Celestica didn't want to retool their manufacturing facilities to accommodate the new device, so RIM has contracted with someone else to make it.

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    My take is that RIM cannot afford to contract its manufacturing in Canada any longer, and the BB10 device will be manufactured overseas in a country where it is cheaper to manufacture.

    Or, Celestica is able to make more money manufacturing other products. See this article:

    The factories of Celestica Inc once hummed to the steady production of BlackBerry smartphones. But the contract electronics manufacturer has stepped out from the shrinking shadow of once-dominant smartphone maker Research In Motion Ltd.

    It still works with RIM, but these days Celestica is just as likely to be building solar panels, wind turbines or bespoke equipment for medical, aerospace or defense customers at its Toronto headquarters.

    It is one of a string of Canadian technology companies building their businesses quietly while most attention stays firmly fixed on the falling fortunes of the former tech darling from Waterloo, Ontario.
    Last edited by lak611; 06-18-2012 at 11:52 AM. Reason: added link
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    Quote Originally Posted by lak611 View Post
    My take is that RIM cannot afford to contract its manufacturing in Canada any longer, and the BB10 device will be manufactured overseas in a country where it is cheaper to manufacture.
    Good thought, that sounds like the most reasonable explanation . . .

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    Yeah, I like that theory, too, Laura. Could be a combination of the two.

    What we don't know yet is if they will continue to manufacture the older devices as "entry level" pieces, moving forward with the BB10 OS and compatible devices on the high end.

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    I found another article, which mentions other products Celestica is manufacturing. Perhaps it dumped RIM, since it makes more money manufacturing for other companies.
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    When a ship starts taking water, everyone grabs a salvage tool to prepare to bail out.
    Retooling, new infrastructure, is needed. Maybe RIM is not prepared to help, or RIM has found someone in the Far East that is prepared and willing.

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    Foxconn?

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    They seem to take on everyone. If you look at their infra-structure investment and resources, its staggering. Their costs are minimal and they've got the trained staff - cheap sheep, no labor laws etc. Maybe.

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