NEW YORK – IBM’s cautious outlook for server and storage hardware suggests lower revenue for its EMS suppliers, including Celestica, Sanmina, Flextronics, Jabil and Benchmark, Deutsche Bank said.

It its most recent quarter, IBM’s systems revenue, which does not include Microelectronics, fell 18% year-over-year and 7% sequentially.

The company’s System x sales fell 32%, storage was down 20% and Systems z (mainframes) dropped 6% from a year ago.

IBM’s slowing growth could impact its EMS suppliers, Deutsche Bank said. Celestica, Sanmina-SCI and Benchmark are said to derive at least 10% of their sales from IBM. Jabil and Flextronics are less dependent, with sales to IBM making up five to 10% and two to five percent, respectively.

Celestica is said to build IBM’s System p and mainframes, and storage. Flextronics and Jabil are also reportedly storage suppliers. Sanmina-SCI builds Series x, and Benchmark builds POS.