Dell teams with China Mobile for its new wireless handsets

Posted Apr 14th 2009 5:40PM by Brian White
Filed under: Products and Services, Competitive Strategy, Dell (DELL)

Looks like Dell Inc. (NASDAQ: DELL) will be entering the wonderful world of wireless handsets. But, with wireless carriers in the U.S. shunning the company's newer wireless phones, Dell will have to go to China to sell its wares this time -- right out of the chute.

Dell, which is so late to the wireless game that it's amazing it didn't just stop before it started, will supply China Mobile -- the largest wireless operator on the planet -- with its newer wireless handsets. One of the upcoming handsets will have a slide-out keyboard, and the other will have a touch screen. Wow -- those are really not new concepts, and with the intense competition in wireless phones at this time, why even bother, Dell?

It's this writer's guess that by the time Dell fully committed to the wireless market, the competitive landscape was evolving so rapidly that a dicey situation was almost guaranteed once Dell actually shipped a wireless product. Since the U.S. carriers saw nothing really impressive (except more inventory to buy and sell), why not team up with the largest mobile operator in the world?

Although Dell does not really need to play in the wireless market, it's just too costly to cut its losses and move on - but if its wireless handset venture does not prove fruitful within 18 months, this will be yet another market entered by Dell, but one that failed to help it in any way shape or form. Dell shares have slid from just under $14 back in November to just over $10 today. Will this announcement with China Mobile help it? Doubtful.

Tags: China Mobile, ChinaMobile, Dell, Dell handsets, DellHandsets, inthenews