March 23, 2009

Dell’s plan to release phone has been stalled due to poor reception

by Dhiram Shah

Dell’s anticipated effort to release a mobile phone has stalled after suffering from a lack of interest among cellular carriers. Dell’s prototype devices, designed to run software from both Microsoft and Google have so far failed to distinguish themselves from a growing field of competitors. Rumors of a branded Dell mobile phone have been swirling since January. The potentially small subsidies from carriers operating cellular networks to help sell Dell’s devices meant it would be difficult for the company to make a profit. A smartphone from Dell would face a slew of tough competitors including Blackberry from Research In Motion and the Apple iPhone. It seems Dell has not given up its effort to release its own branded cellphone though it has gone back to the drawing board to design a more distinct model which may involve related acquisitions. Let’s hope Dell gets a breakthrough! But it won’t be easy.