Brightpoint and Lenovo Collaborate

Indiana-based, Brightpoint Inc. (CELL - Analyst Report) received a contract from Lenovo Inc. for distribution of Lenovo products. As per the terms of the agreement, Brightpoint North America L.P., a subsidiary of Brightpoint Inc. will be responsible for the purchase and sale of Lenovo products to channel partners in the U.S. Lenovo Inc. develops, manufactures and markets technology products and services worldwide.

The collaboration will help Brightpoint provide a superior mix of wireless devices to its customers. It will also ensure better accessibility of Lenovo’s products to their channel partners and will help Lenovo introduce new partners who specialize in wireless devices.

Brightpoint generates revenue from the distribution of wireless devices and accessories and providing customized logistics services to wireless equipment manufacturers and carriers. Distribution revenue accounted for roughly 90.0% of the company’s total revenue in the first quarter of 2010 and approximately 89% in the fiscal year 2009.

Brightpoint serves a wide range of industrial customers like mobile network operators, mobile virtual network operators (MVNO), retailers and wireless equipment manufacturers.

The markets for wireless communications products and integrated services are subject to changing technology and competition. Operating in such an industry exposes Brightpoint to intense competition from a number of players. The company’s prime competitors include Brightstar Corp. (privately held), Ingram Micro Inc. (IM - Analyst Report), and TESSCO Technologies Inc. (TESS - Snapshot Report). We currently maintain a Neutral recommendation on the stock.

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