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Taiwan handset supply chain to be affected by restructuring plans at BlackBerry

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Sales of Taiwan-based ODM/OEM maker Wistron and handset component suppliers Silitech Technology and Ichia Technologies are likely to be affected by the planned restructuring program at BlackBerry after the smartphone vendor revealed an estimated net operating loss of US$950-995 million for the second quarter of 2013, according to sources in BlackBerry's supply chain.

 Wistron is expected to see its orders from BlackBerry cut by half as the vendor plans to reduce its smartphone portfolio from the current six to four, including two high-end devices and two entry-level devices, the sources noted.

Keypad makers Silitech and Ichia will be less affected by the restructuring plans at BlackBerry as the two component suppliers have been exerting efforts to reduce their reliance on orders from BlackBerry in the past two years, said the sources, adding that shipments to BlackBerry currently account for about 10% of Silitech's and Ichia's total sales, respectively. Meanwhile, the sources noted that pull-in orders from BlackBerry have begun tapering off since the third quarter of 2013, indicating mounting inventory pressure at the vendor. Although BlackBerry has begun to take delivery of its latest BlackBerry Z30 smartphone, initial orders for the new 5-inch model seem to be not as strong as those for the BlackBerry Z10 that the vendor placed in the first quarter, commented the sources.

Last modified on Wednesday, 25 September 2013 07:49

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