Recently, Taiwanese media published a report that Palm had rejected $40 million worth of Treo smartphones that had been manufactured by HTC.
Yesterday, however, HTC made a filing with the Taiwan Stock Exchange stating that while the synchronization ports on some of the devices it supplied to Palm are defective, it will replace these.
This process will cost the company about $152,000.
HTC did not reveal which of Palm’s smartphones are affected by this. HTC makes several Palm models, but not its latest, the Treo 680. This device is being manufactured by Inventec, which is also based in Taiwan.