Dell Stepping into PDA Phone Segment of Market?

[Jason Dunn]

<div class='os_post_top_link'><a href='http://www.digitimes.com/news/a20070303PD200.html' target='_blank'>http://www.digitimes.com/news/a20070303PD200.html</a><br /><br /></div><i>"Dell plans to venture into the handset industry and will initially target the PDA phone segment that will position the company to compete with rivals such as Hewlett-Packard (HP), Palm and RIM (Research in Motion), according to sources at Taiwan handset makers. Dell's recent hiring of Motorola's former head of mobile device unit Ron Garriques to run its consumer unit further strengthened the credibility of market rumors, the sources noted. As a leading PC vendor, it is also natural for Dell to choose PDA phones for its attempt to move into the handset industry since the PDA phone is easy to link with PC functionally, the sources added."</i><br /><br />No one can quite seem to nail down what Dell is doing in this market, so the guessing continues until they tip their hand and we all see what cards they're holding. Given the razor-thin margins that Dell usually operates on, and the way they like to control the game from end to end, I have a hard time seeing them doing what HP is doing for instance by building a device, partnering with a carrier, and selling it in the retail channel. By the same token though, given Dell's background in IT infrastructure, I can't see them selling unlocked GSM phones and letting users sort it all out themselves. What do you think Dell is up to?

[Nurhisham Hussein]

By the same token though, given Dell's background in IT infrastructure, I can't see them selling unlocked GSM phones and letting users sort it all out themselves.

Oh, I can - especially if they're looking outside of North America. They have a pretty big presence in Asia for instance. HP certainly operates that way around here.

[fresh-popcorn]

I am actually looking forward to a Dell branded PDA/Phone.
If they offer Unlocked GSM devices with similar specs as their Axim lines and a competitive price point like we know Dell can offer I will be one of the first to get one.

With a discount of course :)

[Fritzly]

Could it be that they are realizing that the World is round and the sick business model so popular in the US: locked phones, subscribers paying when they receive a phone call etc. is one of the reason why, in the mobile phones sector, we are way behind most of the other industrialized nations? Id so better late than never but I am not optimistic.

[Nurhisham Hussein]

subscribers paying when they receive a phone call

8O You're kidding!?! That's ridiculous :evil:

[Darius Wey]

8O You're kidding!?! That's ridiculous :evil:

Paying to receive messages too. Their model is very different to the Asia-Pacific.

[Nurhisham Hussein]

:roll: No wonder email is so popular.

[bnycastro]

In the Philippines it is also the caller who pays for the call. SMS is super popular whilst mobile email isn't as popular.

[virain]

Funny! Just imagine to visit Dell's website to buy a smartphone :lol: Click customize: that much RAM so much ROM Sumsung, TI OMAP or Marvell processor, how fast do you want it to be? Tri-Band, Quad-Band or CDMA, EV-DO? HSDPA? 850/1900 or 1700/2100? would you like Wi-Fi with that? SD, micro SD, mini SD, or Duo memory stick? Would you like a plan with that? Would you preffer T-Mobile, the "new" AT&amp;T, or Verizon, or maybe Sprint is more along the lines you are looking for? :roll: Pitch me someone, I am daydreaming! :devilboy:

[rkopper]

Isn't this sort of thing already happening with their Treo 680 offering? It's not a leap to believe they will offer unlocked unbranded phones. They already do! http://accessories.us.dell.com/sna/productdetail.aspx?c=us&amp;l=en&amp;s=dhs&amp;cs=19&amp;sku=A0943855

Sure it's a Palm, but wouldn't that mean that a pocket pc or smartphone would be that far behind?

[TOCA]

I'd love to see a x52v running WM6 PE...er...that would be WM6 professional, with quad band GSM, UMTS, and all the bells and whistles, for wireless communication and data.

On top of that, it should have the new N-GO graphics chip, and (at least) 1GB of ROM storrage build in to it, and ofcource all the bice things, that is on the x50/51v 8)

Then add THIS http://www.aximsite.com/boards/showthread.php?t=135453&amp;highlight=cradle as the standard cradle, at no extra cost ofcource :devilboy:

OK, back to the real life, and stop daydreaming :roll:

[Stik]

Sure it's a Palm, but wouldn't that mean that a pocket pc or smartphone would be that far behind?

Palm Inc. has consulted an investment bank ( Morgan Stanley ) to explore strategic options, including the possible sale of the company.

Dell's name pops up as a possible buyer of the company.

http://www.belfasttelegraph.co.uk/business/article2332349.ece

All rumor and speculation of course. :wink:

[Jason Dunn]

Palm Inc. has consulted an investment bank ( Morgan Stanley ) to explore strategic options, including the possible sale of the company. Dell's name pops up as a possible buyer of the company.

That would be quite interesting, but I'd worry for Palm - Dell isn't known for their innovative designs or even coming close to pushing the envelope - ever - in an way.

[whydidnt]

While interesting, it seems to me that the mobile phone market is far from what Dell typically does. Dell made their money by building computers to order, keeping prices down by utilizing fairly standard off the shelf components in a just-in-time inventory environment. Sure in recent years, we've seen more proprietary stuff inside their computers, but even then, they still aren't buying/building the parts for the machines until after a customer orders it.

Dell has had recent financial struggles as customers have moved more and more to notebook style PC's as those machines don't as easily lend themselves to the same sort of assemble when ordered model as desktops historically have. As a matter of fact Dell has even been offering re-branded notebooks in some cases.

Apply this same scenario to Cell Phones -- build a large inventory, find a carrier to buy the inventory, etc, and you see that Dell getting into the mobile phone business is pretty far from their core competency. It's no wonder we've been seeing mixed signals. Most likely, they know they would like to be in this market, but still are searching for a way to maximize their ability to profit from it.

[bluevolume]

While interesting, it seems to me that the mobile phone market is far from what Dell typically does. Dell made their money by building computers to order, keeping prices down by utilizing fairly standard off the shelf components in a just-in-time inventory environment. Sure in recent years, we've seen more proprietary stuff inside their computers, but even then, they still aren't buying/building the parts for the machines until after a customer orders it.


Gotta disagree with you here. Dell has been in the PDA business for many years. These devices are completely custom, provided through outsourced manufacturers and are inventoried in large quantities. This model is almost identical to the mobile phone market; the only real difference is that Dell stands to move a LOT more devices.

[fresh-popcorn]

Isn't this sort of thing already happening with their Treo 680 offering? It's not a leap to believe they will offer unlocked unbranded phones. They already do! http://accessories.us.dell.com/sna/productdetail.aspx?c=us&amp;l=en&amp;s=dhs&amp;cs=19&amp;sku=A0943855

Sure it's a Palm, but wouldn't that mean that a pocket pc or smartphone would be that far behind?

A Dell Branded PDA/Phone with options like the one poster above mentioned would be the kick arse way but I don't see that happening.

If Dell does decide to sell PPC Phones they will most likely do so the way of the Axims.
2-3 different versions depending on how much power your looking for and at the price your willing to pay.

[nutzareus]

Dell broke the price barrier for Pocket PCs when the Axim X5 was introduced. I remember how shocked I was with their pricing when the only real choice at the time was the iPAQ 3975. Maybe they can "shock the world" again by releasing unlocked PDA phones so we aren't slaves to the carriers. Although I only use my x51v now for in-vehicle GPS navigation, it is still by far the best "Windows Mobile Classic" PDA out there. Released about 18 months ago, but definitely not long in the tooth!

[peterawest]

[quote=rkopper]Dell's name pops up as a possible buyer of the company.

Yep, and here's more speculation about the possible sale to Dell. I would be very happy to see this happen.

Is Palm for Sale?
http://www.internetnews.com/wireless/article.php/3663646