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BlackBerry Restructuring to Shake Up Handset Supply Chain

BlackBerry restructuring: The fact that BlackBerry Ltd (NASDAQ:BBRY) is going through a difficult stretch is not much of a surprise to most people. The company has been struggling for many years, trying to recapture its former glory in the smartphone market.

BlackBerry Ltd (BBRY) Restructuring to Shake Up Handset Supply Chain

With BlackBerry restructuring taking place, the Taiwan handset supply chain is going to be negatively impacted.

According to a recent report by Digitimes, Silitech Technology and Ichia Technologies are likely to be affected by the recent changes at BlackBerry.

After BlackBerry posted an “estimated net operating loss of US$950-995 million for the second quarter of 2013” it is only natural for the company to consider any and all opportunities for getting back on track in the near future.

ODM/OEM maker Wistron is going to be hit the hardest by the BlackBerry restructuring, with the Digitimes piece suggesting that it could see its orders reduced by as much as half as BlackBerry cuts its smartphone portfolio down to four models.

As noted above, Silitech Technology and Ichia Technologies are also going to be affected by this change, although not nearly as much as Wistron. These two suppliers are in better position because they have been doing their best to cut back on their reliance on BBRY over the past two years.

At this point in time, BlackBerry shipments account for roughly 10 percent of sales at both Silitech Technology and Ichia Technologies.

It is also interesting to note that the new BlackBerry Z30, according to the same sources, are not as strong as the BlackBerry Z10 that came before it. The piece added that, “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.”

Not only is BlackBerry cutting back due to restructuring, but one has to wonder if the Z30 is going to be as well received as many believed it would be.

It is impossible to deny the fact that BlackBerry is in a difficult spot at the present time. This is affecting the once dominant smartphone manufacturer, as well as many of the companies that make up its supply chain.

Do you think the following hedge fund managers will continue to invest in the company? Or do you think the BlackBerry restructuring plan will scare them away? Prem Watsa, Douglass Dillard, and John Thaler.

Share your thoughts on the BlackBerry restructuring below.

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