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Electronics Production | April 24, 2009

RIM to bargain with suppliers?

RIM is looking to bargain with its suppliers to reduce supply cost. About 90% of RIM's production costs comes from its five biggest suppliers.
Co-chief executive officer Jim Balsillie is cited in a Taipai article in saying that the good growth provides him with leverage to press for bargains during the recession. This bargaining might help to elicit better terms from its suppliers.

About 90% of RIM's production costs comes from its five biggest suppliers. EMS-provider Elcoteq apparently accounts for 1/3 of RIM’s costs. The others are Jabil Circuit, chipmakers Marvell Technology, Multi-Fineline Electronix and Qualcomm.

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