RIM to scrap Celestica deal

City A.M. Reporter
CONTRACT electronics maker Celestica will stop making products for its biggest customer, Research In Motion, by the end of the year as the BlackBerry maker seeks to cut costs by shrinking its global supply base.

RIM’s decision to trim the number of companies that build its smartphones illustrates the falling fortunes of the once-dominant smartphone maker as it looks to cut $1bnfrom its operating costs this year. Major layoffs are planned.

Celestica will likely take a near-term hit due to RIM’s move.