OEM spends $35 million to give up on RIM -

One of RIM's suppliers is spending $35 million to stop making bits for RIM's Blackberry.

Toronto-based Celestica has announced that it will stop producing hardware for RIM over the next three to six months.

It said that it will cost $35 million to restructure RIM out of its hair once and for all.

The vendor also announced that it would take a $1 billion charge related to unsold BlackBerry device inventory.

Part of this is because RIM will not launch its first BlackBerry 10 smartphone until late this year.

By the time it comes out it will face competition from Apple's next iPhone and a variety of new Android smartphones.

Celestica said in a statement that it will work closely with RIM throughout the transition.

It said it will release more details at the end of next month when it comes to announce its results.

This cannot be good news for RIM. It might be trying to find an OEM in foreign parts which can make its products cheaper, but it generally means that things are getting even worse for it in the short term.

Smart money is on the fact the company will go tits up after the Blackberry 10 fails to interest anyone.