Brightpoint has parted ways with PalmOne and announced a global agreement with Microsoft.
Following a strategy review, the hardware distributor would focus on what it saw as the growing market for the Windows mobile platform and Symbian-based smart handhelds, its general manager, Felix Wong, said.
"Analyst figures show Microsoft and Symbian devices lead the market but Palm numbers continue to be flat," he said.
But PalmOne country manager, Geoff Anson, insisted the company made the decision to drop Brightpoint.
The vendor also had a relationship with Tech Pacific before its merger with Ingram Micro.
The combined entity gave it stronger market capabilities, Anson said, and met all of PalmOne's distribution needs.
It has also redeployed several US-based staff to its local operations, eliminating the need for a value-added partner such as Brightpoint, he said.
According to IDC, smart handheld vendor, Nokia, ended 2004 with 30.7 per cent marketshare. It was followed by HP on 17.4 per cent, PalmOne with 10.6 per cent, new entrant O2 on 8.9 per cent and Motorola with 8.4 per cent.
The analyst firm warned minimal growth was expected for the older pen-based models such as the HP iPaq and PalmOne.
The early market leader in the pen-based personal organiser market, PalmOne was a later entrant to the smart handheld sector with its Treo model.
The vendor said it would bring out a new category of mobile computing products later this month.