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Michael Dell: We may make a phone. Just not yet.

Posted Sep 5th 2008 2:37PM by Brian WhiteBrian White RSS Feed
Filed under: Rants and raves, Apple Inc (AAPL), Dell (DELL)

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Dell, Inc. (NASDAQ: DELL) founder and current CEO Michael Dell said this week at the Citigroup technology conference in New York that his company may make a wireless smartphone. Sigh. This rhetoric is getting ridiculous. I am sure Dell hired former Motorola wireless division chieftain Ron Garriques to man the company's technical support lines. Note to Michael Dell: just announce a friggin' phone already and get over it.

In recent years (until about the end of 2007), Dell's formulaic "me too" stance in non-PC electronics like flat-screen televisions, MP3 players and others have fallen flat on their respective faces. When the company saw the market for PDAs dissolving into nothing, it stopped making its Axim line of Windows Mobile PDAs -- which were regarded by some as some of the nicer ones on the market. Yet, it has not replaced that PDA line with a smartphone that is very powerful but features voice calling plus 3G wireless data. In other words, it's way behind the market here. Ask Apple, Inc. (NASDAQ: AAPL) about its iPhone sales for more elaboration on this.

Dell himself stated at the Citigroup conference, "I think you will see us with small screen devices ... you'll see us with smaller and smaller devices that have capabilities of the devices you are referring to. Not in the near-term." What does that mean? Sometime in 2010 we'll see Dell with another me-too smartphone that's cookie-cutter and years behind the competition? If that's the plan, Dell's new smartphone had better be game-changing like Apple's iPhone was in 2007. If not, Dell's history of making commodity products will ring up another boring (but sellable and profitable) semi-winner.

Tags: AAPL, Dell, Dell phone, DellPhone, Inc., iPhone, Michael Dell, MichaelDell, RonGarriques

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