Reports from various analysts and blogs, are speculating over Dell’s next move regarding the smart-phone market. Dell’s prototypes running Android and Windows mobile, were rejected by carriers with the main criticism being the lack of differentiation to other handsets already in the saturated mobile phone market.
This will either prompt Dell to go back to the drawing board, or look at a different strategy to entering the smart-phone market. One of these strategies would be to buy Palm who already have handsets in this market and have a 13% stake in the market. Analysts such as Shaw Wu from Kaufman Brothers and Sramana Mitra have suggested that this would be the best move for Dell given their position in the market.
Given that PDA’s have been killed off by smart-phones, echoed by Dell’s recent action to stop producing the Axim, Dell will be looking to fill this gap with something substantial. As CEO Michael Dell said on Tuesday in a speech in Tokyo,
“We don’t have any announcements to share today, but stay tuned as when we have new news we will share that with you.”
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