O2 and Carphone have stopped buying Palm Pre phones, Mobile can exclusively reveal.
O2 said it had stopped buying the handsets because it 'has enough to meet the demands' of its customers.
Carphone Warehouse, which bought the Palm Pre directly from O2, confirmed it had also stopped buying the device.
Palm's Pre handset, which was launched exclusively on O2 in December last year, has struggled to make an impact in the UK market, with retail staff complaining of poor sales.
The news comes on the day IT giant HP announced it was buying Palm for £657m.
An O2 spokesman said: 'Yes we have stopped buying Palm Pres because at the moment we have enough to meet the demands of our customers.'
In a blog on the O2 website today, general manger of devices Steve Alder had written: 'When we first announced our exclusive relationship to sell the Palm Pre we talked about how exciting the webOS platform was and how it was a breakthrough in bringing information from lots of different places together.'