Parks Associates Blog

Friday, January 30, 2009

Dell Rumored to Enter the Smartphone Race

When I posted my last blog about Android’s market traction, I left out a name: Dell Computer. According to today’s Wall Street Journal, Dell is close to completing the design of an Android-based smartphone. Dell’s spokesperson declined to comment on specifics, saying the company “hasn’t committed to anything.”

Should Dell count on smartphones to revive its sales and brand? The smartphone is a hot product category, but Dell is a newcomer to the mobile phone space. It would have to contend with sluggish consumer spending and fierce competition from category leaders Apple, RIM, and Samsung while at the same time building carrier relationships and retail presence. That series of tasks might be too complex an undertaking for a company in transition. Dell might be able to navigate through it, but there's also the risk that its smartphone will end up with the same mediocre sales figures as its Digital Jukebox (its MP3 player brand) or PDA products.

On the other hand, Dell’s entry into the netbook market is a sound move. This segment is an extension of the mainstream PC market. If Dell can make a netbook as thin as Apple’s latest Macbook, its product could be a resounding success. What could be another product segment with strong growth potential? Has Dell considered designing a digital book reader like Amazon.com’s Kindle? This product category is still evolving, meaning there is plenty of opportunity to improve form factor, function, and ease-of-use. Dell would be able to score better ROI in this product category than with the smartphone.

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1 Comments:

Anonymous cheap computers said...

If Dell can make a netbook as thin as Apple’s latest Macbook, its product could be a resounding success.

7:28 AM  

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