Rumours have abounded for ages that PC manufacturer Dell have been wanting to get in on the smartphone game. Rumour’s also had it that they’ve had a couple of prototype phones ready to show off to networks and potential buyers. However, a new rumour’s now popped up, courtesy of Barron’s, stating that whilst they have indeed got a couple of prototype phones, nobody wants to touch them. Allegedly, they’re not differentiated enough…
Or, to use layman’s terms, they’re dull.
Shaw Wu, an analyst at Kaufman Bros, is quoted as saying, “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%.”
However, he also went on to state that Dell are still after getting in on the game, even though their current prototypes don’t stand out enough when compared to upcoming phones like the Toshiba TG01 or the Palm Pre. He also mentioned that Dell may well be looking at splashing out some cash to buy companies who’ll give them an edge when it comes to phones.
It’s at this point that the Barron’s article gets all speculative, and makes the suggestion of Dell buying Palm.
Now that’d be an interesting. On the one hand, you’ve got Palm, with a swoon-worthy new OS, a phone that’s getting ace reviews before it’s even been released, and a serious lack of cash, if everything doesn’t turn out exactly right. Put simply, as many have noted in the past couple of weeks, they can afford to get the Palm Pre launched and marketed, if they do it soon, but there’s no wiggle room, and they are, essentially, skint. As in properly, Dan Aykroyd in Trading Places, skint.
Dell, meanwhile, have pots of cash, have loads of close relationships with IT departments round the world, but unfortunately, it seems, are incapable of making a smartphone people want to buy. Which is a shame, given how impressed I was by the fact they got me a rock solid PC sent out within ONE working day of me ordering it…
As long as the resultant phone comes with the design and tech of WebOS, and the money of Dell, and not the other way round, it’d work a treat…
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March 24th, 2009 at 7:06 am
Just like the rest of Dell’s products. This is one company that needs to stay out of the smartphone game and worry about making their computers more interesting.