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Dell is aggressively targeting the tablet market, but it will leave phones to others

After a successful shareholder vote, and financing help from Microsoft Corp. (MSFT) among others, Michael Dell finally has the leverage he needs to take his company private.  While he'll still have private investors to answer to, and will still have to solve his company's dramatic slide in the PC market, he will at least be able to tackle these issues without being over scrutinized by the media.

Michael Dell, in an interview with CNBC on Friday morning, said, "[Going private] will open an exciting new chapter [for Dell and its customers]."

Going ahead, he says his company will focus on five key goals:
  1. Improving enterprise hardware/software offerings
  2. Expanded sales capacity
  3. Targeting emerging markets
  4. Improving buyer experiences
  5. Building better PCs/tablets

Dell showed off a bit of its strategy for that final point at the 2013 Intel Developer Forum (2013 IDF) this week, teasing at the upcoming Dell Venue tablet line, based on Intel Corp.'s (INTC) new Bay Trail chops.

Notably not on the list are "smartphones".  Dell has played with the segment in the past, launching the Dell Aero -- a budget Android model in early 2010 -- followed by the fancier Dell Venue (Android) and Dell Venue Pro (Windows Phone 7) later this year.  But none of these phones achieved major sales success, and by mid-2012 Dell had quietly pulled the plug on this fledgling project.

Dell Venue Pro
While better looking, the Dell Venue Pro did not produce sufficient sales for Dell to continue the expensive business of smartphone development.

On Friday Michael Dell quashed any hopes of a Dell smartphone comeback, while vowing that his company would deliver great mobile product in other segments like tablets.

Source: CNBC



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RE: has anyone seen one of these in the wild?
By troysavary on 9/14/2013 6:55:01 AM , Rating: 2
Why, no one in the phone market except Apple and Samsung, and maybe Nokia, are making money at it. The North American market is all about carrier subsidies, and if they can't get the carriers to bend over for them, they won't sell. The emerging markets are filled with budget Chinese devices and I doubt Dell wants to get into another race to the bottom like that.


RE: has anyone seen one of these in the wild?
By Motoman on 9/14/2013 11:09:54 AM , Rating: 2
They don't have to. As I mentioned, all they need to do is pick a partner and relabel a model or two, and then put it in their catalog.


By Flunk on 9/14/2013 12:53:53 PM , Rating: 2
HTC would be a good choice. They've worked together before, all of Dell's Axim Pocket PC's were made by HTC. They're also not in a position to say no or demand too much.

Dell is really shooting themselves in the foot here. Top to bottom market integration is what sells Apple and Samsung products. Happy customers come back for more.


RE: has anyone seen one of these in the wild?
By troysavary on 9/15/2013 6:40:58 AM , Rating: 2
So you are saying they should be selling Windows Phones, since you are basing your argument on top-to-bottom integration?


By Motoman on 9/15/2013 7:40:15 PM , Rating: 2
Meh. Doesn't matter. You can integrate Exchange into Android phones just as easily as Windows phones...and that's all that really matters.


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