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2 Ripple Effects From BlackBerry

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BlackBerry isn't the only one suffering from its troubles. Upstream and downstream partners are also feeling the adverse impacts.

Beyond BlackBerry's (BB 0.59%) earnings and Fairfax Financial news, there are other signs of trouble for the Canadian smartphone maker. No. 4 wireless carrier T-Mobile has said it's pulling back all of its BlackBerry inventory because the devices aren't selling. The company would rather not carry the inventory risk. Sprint is willing to wait and see what happens before making any decisions, as the No. 3 carrier offers the Q10 on its network.

Carriers aren't the only partners skeptical of BlackBerry's prospects, as manufacturing partner Jabil Circuit (JBL 1.18%) now says it's looking to wind down its relationship with BlackBerry. Jabil dropped 10% on Thursday after it said it would recognize restructuring charges related to BlackBerry while also providing disappointing guidance. BlackBerry is Jabil's second-largest customer, so it's also feeling the fallout.

BlackBerry's woes are rippling to its upstream and downstream partners. In today's episode of Tech Teardown, Erin Kennedy discusses the latest BlackBerry news with Evan Niu, CFA, and Jamal Carnette.

Neither Erin Kennedy, Evan Niu, CFA, Jamal Carnette, nor The Motley Fool has a position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

BlackBerry Stock Quote
$6.78 (0.59%) $0.04
Jabil Circuit, Inc. Stock Quote
Jabil Circuit, Inc.
$62.38 (1.18%) $0.73

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