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News

Dell May be Prepping for iPhone Competition

Friday, January 30th, 2009 at 8:17 AM - by Jeff Gamet

 

PC maker Dell may be on the verge of entering the smartphone market with its own iPhone-like touch screen device. The company has apparently been working on a smartphone lineup for over a year and has prototypes bases the Google Android and Windows Mobile platforms, according to the Wall Street Journal.

Dell's smartphones include a touch screen model without a physical keyboard, and another that sports a slide-out keyboard. Both include email and Web browser software.

Just because Dell is working on smartphone designs, however, doesn't mean the company will bring the devices to market. When asked about the company's plans, a Dell spokesperson commented "We haven't committed to anything."

Should Dell move forward with its smartphones, it will have to take on the iPhone and RIM's Blackberry -- both powerhouses in the smartphone market. Based on the company's past performance with handheld devices that include a failed digital media player lineup and a second player lineup that never made it to market, the likelihood that Dell could hold its own against Apple and RIM in the smartphone market seem slim.

 

2 comments from the community.

You can post your own below.

Tiger said:

January 30th, 2009 at 10:10 AM

Why oh why would they actually ever produce products in the phone market now?

It’s not like they will ever make money on them. Dell has turned themselves into the Walmart of computers. Wait, make that Dollar Tree. I love a good David and Goliath story, but get real, Dell doesn’t make for a great underdog.

   Quote

nealg said:

January 30th, 2009 at 10:50 AM

Dell’s business model is one of looking for situations where margins are high where they can build something cheaply and undercut the competition. I think with smartphones, the thing that seems to sell the phones most is the interface. The better the interface, the more people use and like the phone.  Can Dell build a device that has a decent usability index and keep the margins high enough to get consumers interested?

The big problem for Dell is they haven’t found anything new to commodotize lately and make money on. This is the reason why I think they are looking at this market.  I am thinking this will not be the right business for Dell but I would bet that they will still give it a try since they think they are seeing fat margins here.

Neal

   Quote

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