Palm bets its Chips on existing distributors

Palm bets its Chips on existing distributors

Handheld vendor Palm will stay with its existing channel base and not transfer distribution to IT Wholesale following the divestment of IT&e's distribution arm Chips.

IT Wholesale will take over many of the Chips product lines. For the time being, Palm is happy to keep the status quo, company executives told ARN.

"The only change to our distribution arrangements is the announcement from IT&e that they are selling Chips," said Daren Ng, Palm sales director for South Asia, Australia and New Zealand. "IT Wholesale is a different entity to IT&e. With the integration of Chips they have taken over some of the product lines but Palm is not one of them."

Palm's distribution arrangements with Advanced Portable Technologies (APT) and Tech Pacific remain. As IT Wholesale is owned by telecommunications distributor Cellnet Telecommunications, it is likely that their business model competes with current distributor APT, owned by Brightpoint Australia.

Palm would not comment on whether the appointment would conflict with current distribution arrangements, saying only the process of appointing a new distributor was too lengthy for the company to comment on in the short time-frame since the closure of Chips.

"A business plan would be needed to see if [the company] was in line with Palm's business," Ng said. "That couldn't be done in the short time frame. We haven't had a really good opportunity to study the business plan of IT Wholesale."

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