Dell smartphones - back to the drawing board?

Reports are circulating that Dell has presented a variety of new mobile phones, running both Android and Windows Mobile, to a range of carriers and all of them have been rejected, stopping Dell's release plans dead in their tracks.

 

Shaw Wu, an analyst at Kaufman Bros. uncovered more detail on the rejection. He reported to the Barrons website that the mobile phones all 'lacked differentiation' when compared to the current competition. The interest in Palm's new Pre mobile is also damaging any possible excitement generated by Dell.

 

Wu said: 'From our conversation with supply chain and industry sources it appears that it ultimately came down to lack of carrier interest and small subsidies, making it difficult for Dell to make a profit. In our view, the last thing Dell needs is to enter another money losing business as it seeks to preserve its operating margins of 5%-6%.'

 

He also added that Dell has now decided to modify the current designs before presenting the handsets to the industry.

 

Click to read the Barron's story

 

 

Written by Mobile Choice
Mobile Choice

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