Dell throws in the towel on smartphones in U.S.
Summary: Dell exits the U.S. smartphone market in an attempt to start over. It's a temporary setback for a key entry point into the enterprise.
"Go hard or go home."
If you played sports as a kid, as I did, you are no doubt familiar with this oft-used phrase. It's a small part of the well-worn tradition in sports of girding oneself before a game, a verbal alternative to the reassuring routine of jumping up and down in place, slapping tensed muscles and hollering.
It is preparation to go to battle. It is a singular focus: win.
That focus was not on display this morning as computer maker Dell reportedly pulled out of the U.S. smartphone market, ceasing sales on the Venue and Venue Pro and retreating with its tail between its legs.
"With the consumerization of IT in the enterprise, Dell is focusing more on mobile devices that can be used for both work and home," IDG's Agam Shah reports.
And yet that's exactly the opposite of what happened here. Dell entered the smartphone market by recognizing the mobile device as a key entry point into the lucrative enterprise, then barely made a splash. It's like showing up to the Super Bowl with the Duluth Bulldogs -- Apple played by the New England Patriots, RIM played by the Indianapolis Colts or Samsung played by the New Orleans Saints, naturally -- there's a chance of an upset, but it's more than likely that you're going home with a highlight reel of gaffes.
(CNET's review of the Aero: "...a huge disappointment." The Venue: "...falls short of the competition." The Venue Pro: "...shouldn't disappoint." The Streak 7 tablet: "...not enough to distract us." Not exactly the stuff that will shake you from the status quo -- though it takes more than good hardware to win at this game.)
To be fair, Dell's down and not out -- it still sells mobile devices in China, India and other high-growth markets. It will try again. But it's a damn shame that the company had to enter the mobile market -- clearly the dominant one over the next 10 years, no doubt about it -- in a somewhat get-rich-quick, quarter-over-quarter desperation move, rather than a clear-eyed, long-term, strong-hand-at-the-helm strategy. Whatever internal consternation it may have experienced in getting those phones and tablets out the door, it was not nearly enough effort to truly put a dent in the market.
One of the four key pillars for Dell in 2012 is to "deliver solutions that customers value," and through that arrive at another pillar, "capture growing share of IT profit pool."
Michael Dell himself hinted at this hardware-to-services hand-off just over a year ago:
On smartphones and tablets, we were very pleased to introduce the new Venue and Venue Pro which are Android and Windows Mobile 7 based 4.1 inch products. You’ll see us enter the 10-inch tablet space with both Android, Honeycomb and Windows later on this year. And we think those will be reasonable platforms for us to participate more broadly in this space. Now we have also rolled out services for mobility because we see many customers really looking to integrate these mobility solutions into their environments and that is a source of demand inside our services unit.
If the company really wants to mirror its traditional computer business in the mobile sector -- enterprise services and hardware, together, in a turnkey portfolio -- it's going to have to get its mobile act together. Not just enter -- win.
Go hard or go home.
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Talkback
It's easy to start up and then stop
They can come back as quickly as they left.
I agree with you, for a change. Nice observation.
that's the price for not using FOSS
Even George Clooney can't pull it. ;)
RE: that's the price for not using FOSS
o Dell was the only major Microsoft OEM to offer desktop Linux (i.e., Ubuntu) pre-installed on consumer desktop and laptop PCs.
o Dell continues to sell servers supporting both RHEL server and SLES.
And... we're back to normal.
This is just another sign of a healthy competitive market, right?
This is what we all are cheering for, isn't it?
Apparently you lost your cheese
Did I not accurately describe the state of the market?
Unless you are cheering for a market where 1 company gets 95% of the profits and every other company, one at a time, drops out? The last time that happened in the tech industry, that worked out really well for consumers, right?
Maybe they should bring back Blackberry ....
Spoken like a true
[i]Windows Phone is not ready for enterprise or consumers[/i]
Well, from what I've been reading and seeing with Android, niether is that!
LOL! :D
Adoption says otherwise
Actually
The one thing I will give both iOS and WindowsPhone is the user experience is more consistent. The UI is the same across all models and both are fairly easy for a person to pick up and just start using. Android is a different story where the UI can fluctuate from model to model and depending on the version of Android. Some models seem to be easy to set up and others are not very intuitive at all. Having users with phones running iOS, WP7.x, and Android I get more "Help Me" issues with Android phones than anything and every model seems to be a bit different. We also have more phone failures with Android Devices too where aside from people dropping or losing their iOS phones and WP7.x phones they seem to work without a hitch.
All that being said they can all do pretty much what most people want to use their phone for when it comes to work out of the box.
Dell employees are much better off with WP than Blackberry
Another "me too" company bails
A disjointed company
I wonder what the driver was in the smartphone division?
Really?
Nothing Dell does is anything other than very poor!
dell pc's are ok
If your employer gave you a pc that it is too cheap for what you need to do at work, do not blame the pc manufacturer.
Dell makes Alienware!
So you got some basement gear from Dell, that is far from what Dell is capable of.
Monitors!
Everyone hates some brand or another...
Everyone hates some brand or another. I always hated HP for shoddy systems, and especially their terrible tech support. My Brother in law had several HP systems and has even raved about their wonderful tech support. Go figure...