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CellStar to manage distribution for Intel smart phones

CARROLLTON, Texas—CellStar Corp. announced it has entered a strategic alliance with Intel Americas Inc. under which it will manage the logistics solutions for fulfillment and distribution of Intel-powered smart phones.

The program will be rolled out during the next couple of years to more than 40,000 Intel Independent Product Dealers, a distribution channel that currently manufactures and distributes other Intel-powered products. Using CellStar’s fulfillment and distribution tools, the dealers will also carry Intel-powered smart phones.

“Intel is committed to grow in the wireless industry, offering support to both our manufacturers and Intel Product Dealers, but with so many Intel Product Dealers across the U.S., we needed a world-class organization to help with the logistics,” said Jake Smith, Intel Americas’ mobility manager. “CellStar’s reputation and industry expertise preceded them, but its existing infrastructure, distribution capabilities and existing relationships with key manufacturers and Intel customers makes them the clear choice to provide logistical support.”

The partnership news follows bleak third-quarter financial warnings from CellStar earlier this week prompted by continuing trouble in its business operations in China. The warning caused the company’s stock to fall 20 cents below its previous 52-week low, but the stock rebounded almost 13 percent to $4.89 on the Intel news.

The Asia-Pacific region accounts for 50 percent of CellStar’s overall business, with China making up 80 percent of that segment.

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