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News

Dell Scraps Smartphone, iPhone Safe for Now

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.

 

6 comments from the community.

You can post your own below.

Lee Dronick said:

Yes, the iPhone is safe for now, it really dodged a bullet this time.

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deasys said:

Great headline—thanks for the laugh.

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brett_x said:

That’s a relief. I was worried that upon the success of the Dell phone, Apple would be forced to Shut down and give the money back to the shareholders.

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Al said:

This design think not as easy as we thought, eh Mr. Dell?

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azarkon said:

Could you imagine carriers complaining that the iPhone was too apple like?  that’s a pretty big insult to dell—but I can see where there model of cheap and passible wouldn’t appeal to the cellphone market.  With smartphone service plans costing thousands over two years, being able to offer the phone for $50 or $100 less than the competition is just small peanuts.

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cramar said:

brett_X that was the most hilarious comment I’ve heard in a long time. Thanks. Made my day.

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