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So, er, what happened to that Dell smartphone?

Analyst suggests operators weren't keen on prototype

So, er, what happened to that Dell smartphone?
Back in January, there were strong rumours that PC firm Dell was working on its first smartphone. However, Kaufman Bros analyst Shaw Wu is claiming that the prototype didn't float the boats of mobile operators.

Or, as he puts it in a research note:

"From our conversation with supply chain and industry sources, it appears that it ultimately came down to lack of carrier interest and small subsidies, making it difficult for Dell to make a profit. In our view, the last thing Dell needs is to enter another money losing business as it seeks to preserve its operating margins of 5%-6%."

Wu goes on to claim that Dell built prototypes using both Windows Mobile and Android, but that they weren't seen as sufficiently different to existing handsets.

However, that doesn't mean Dell is backing away from the smartphone market - sensibly, given that rivals like Acer and Lenovo are getting into it.

Wu says Dell is "going back to the drawing board" and designing a more interesting handset, which will "likely involve vertical integration of some sort including software and/or services."

Contributing Editor

Stuart is a freelance journalist and blogger who's been getting paid to write stuff since 1998. In that time, he's focused on topics ranging from Sega's Dreamcast console to robots. That's what you call versatility. (Or a short attention span.)