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Dell Scraps Smartphone, iPhone Safe for Now
Monday, March 23rd, 2009 at 9:50 AM - by Jeff Gamet
Dell's plans to jump into the smartphone market with an iPhone-like touchscreen device took a step backwards now that the company has apparently scrapped its first attempt after cell carriers showed little interest in what they saw as a bland device. Apparently the cell carriers rejected the device because it was too "Dell-like" and didn't offer anything to set it apart from other phones that are already on the market, according to Kaufman Bros. analyst Shaw Wu.
Barrons reported that Dell tried its hand at Windows Mobile and Android-based prototypes, but couldn't come up with something that wowed the cell carriers. The PC maker also had to go up against carrier interest in Palm's recently announced Pre smartphone.
Stumbling out of the starting gate isn't, however, stopping Dell from moving forward with its smarphone plans. The company is "going back to the drawing board [and] designing a cell phone with more differentiation," Mr. Wu said. He added that the next prototype will "likely involve vertical integration of some sort including software and/or services."
Dell may also be considering buying up other companies to help get into the smartphone market. If so, Palm might be ripe for the picking since it has been suffering from a string of weak performance quarters and the highly anticipated Pre hasn't started shipping yet.
Considering Dell's past luck with handheld devices -- think Digital Jukebox MP3 player -- the company may be better off buying a company that already makes a smartphone and rebranding the device as its own.
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