8/27/2009 11:32:00 AM
Brightpoint fights to meet Nokia and RIM handset quotas
Brightpoint GB is struggling to meet its handset commitments for Nokia and RIM as it looks to extend its dealer base.
Several traders said they had been approached by Brightpoint in recent weeks to take cut-price stock from the distributor.
However, sources said bosses in America recognised the UK as one of its toughest markets and it is not interested ‘in wild, unsustainable growth’.
The UK division of Brightpoint is focused on retaining its coveted supply deals from RIM, Nokia and HTC. It has exclusive supply deals from HTC and an exclusive deal for Nokia business devices.
One source close to the business said: ‘They are becoming closer to a pure handset distributor like [rivals] 20:20 Mobile and Data Select.’
Several traders are understood to have started waiting until the end of the month before taking orders, as they know Brightpoint will be keener to ship stock to meet manufacturer targets.
It is believed Brightpoint has not been helped by the likes of Nokia and RIM putting excess stock into the market, making it harder for the distributor to sell devices.
The company is understood to be considering either developing a billing system to meet airtime needs or acquiring a business. Brightpoint has previously said it wants to extend its dealer base with a ‘turnkey’ solution offering full connectivity of mobile and fixed-line products with hardware.
The company has been working to reduce its debt despite declining revenues. It saw revenue fall 40% to $723m in Q2 2009 compared with the same period last year.
Group CEO Bob Laikin said: ‘We will continue to focus on investing in Europe and executing our European strategy, which revolves around building ‘centres of excellence’ and creating a ‘shared services centre’.
Brightpoint’s UK business was formerly called Hugh Symons Telecom before it was acquired for £3.6m in April 2008.