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© snehitdesign dreamstime.com Electronics Production | December 30, 2013

Apple is Jabil’s largest customer?

Jabil has lowered it’s guidance for its upcoming quarter. Jabil CEO Mark T. Mondello cited the recent “disengagement with BlackBerry”, as well as “demand changes in a segment of our DMS [Diversified Manufacturing Services] business” as reasons.
“Guidance for the second quarter. We expect revenue on a year-over-year basis to decline approximately 17 percent to be in the range of $3.5 billion to $3.7 billion,” stated Jabil CFO Forbes I. J. Alexander during Jabil’s recent fiscal first quarter earnings call. (transcript source: Seeking Alpha)

Although avoiding direct answers to questions relating to the statement about demand changes, media and market observers believe Apple to be the customer affecting these changes.

Everyone seems to agree that Jabil was a major producer of iPhone 5c components (although not confirmed). Taken into consideration that iPhone 5c sales are below expectations, suppliers will be somewhat affected (possibly lowering guidance as a consequence, one would imagine).

In fiscal 2013 (ended August 31, 2013), Apple stood for 19% of Jabil's total revenue (fiscal 2012: 13%), while BlackBerry - or RIM - provided 12% of the revenue (fiscal 2012: 10%), making them the two largest customers of the Florida based EMS-provider.

With the wind down its manufacturing program for BlackBerry, figures suggest that Apple is now a above-20% customer.
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December 13 2018 1:08 pm V11.10.14-2