Dell's Smartphone: No Ringing Endorsements
Kaufman Bros. analyst Shaw Wu recently wrote in a research note that there is nothing to differentiate Dell's attempt at a smartphone from anything else on the market, citing a lack of carrier interest as the primary evidence.
"From our conversations with supply chain and industry sources, it appears that it ultimately came down to lack of carrier interest," Wu wrote, according to Market Watch. The lack of interest in the mobile device reportedly has Dell going back to the drawing board to revamp design and functionality.
Even with a redesign of the smartphone, Dell is facing an uphill battle. Computer manufacturer Acer showcased its line of mobile devices at Mobile World Congress in February. That's not to mention the already stiff competition being put forth by LG, Nokia, Research In Motion and Apple.
Cell phone carriers—like consumers—have to be asking themselves whether or not another run-of-the mill smartphone is worth providing. Apple's iPhone already commands a loyal following, the BlackBerry is entrenched in business use and a number of consumers are undoubtedly waiting for the launch of the Palm Pre.
That competition raises a single question: Is Dell's attempt at a smartphone better? Unfortunately for Dell, the reaction seems to indicate that the answer is no.. Dell may have hit on something with the design of the Adamo and may be able to compete with Apple on the high-end computing turf. But when it comes to the mobile device market, customers aren't interested, at least for now.
Whether or not the redesign of phone will make a difference remains to be seen. But for the time being it appears that no one is clamoring to wait in line for Dell's smartphone.