Palm's latest smartphone will no longer be shipped to Europe because it breaches EU hazardous substance regulations.

Palm has stopped shipping the Treo 650 smartphone from 1 July to meet the new RoHS (restriction of hazardous substances) Directive [pdf], confirmed Andy Brown, Palm's chief financial officer.

The company decided nine months ago that it wouldn't update the product to meet regulations, CEO Ed Colligan stated. "We felt like the product was long in its lifecycle and to make that change at this point did not make sense," he said.

Palm expects to ship a smartphone to Europe later this year but in the meantime, European operators that offer the Treo 650 have a stock of the devices to continue selling. The Treo 650 is the only Palm smartphone available in Europe.

The RoHS Directive was created by the European Union in an effort to reduce hazardous waste from electrical goods. Local organisations in each country are responsible for enforcing the directive.

Palm's strategy puzzled some analysts. The shipments are being stopped just as the Treo 650 is picking up momentum after promotions from Orange and O2, said Geoff Blaber, an analyst for IDC. At the same time, Palm recently decided to make two other new products, the 700w and the 700p, available only in North America. "They chose to target North America, where the Palm OS is strong, as opposed to really making Europe a priority, a region where they're really struggling," he said.

Blackberrys and Symbian-based smartphones are currently more popular in Europe than Palm devices, and a potential lag between when the stock of Treo 650s runs out and the product appears on the shelves won't work in Palm's favour. "The Palm OS has been struggling in Europe so an absence of Palm devices is not likely to help that cause," Blaber said.

Palm, however, says that it is just beginning its push into Europe in earnest. It recently opened an engineering facility in Dublin and is starting to better support the needs of European carriers and customers, Colligan said.