Has Dell learned from the Axim or the iPhone?
Speaking before an audience in Tokyo Tuesday, Chief Executive Michael Dell dropped a few hints that his company might be looking to release a smartphone.
"For the last three years, we have integrated 3G radios into our notebooks," said Dell. "We already have agreements with many mobile carriers around Netbook devices, so it wouldn't be unreasonable to expect that we would have smaller mobile Internet devices or smartphones in the future."
I don't think Dell can simply start selling small computers, call them smartphones, and expect to be successful. As a company that missed quite a few trends in the market and one of the last to stop selling Pocket PCs, Dell has to carefully prepare for some of the issues that await it if it does release a smartphone.
The market has changed since the Axim
Dell has been here before. The Dell Axim line was launched in 2002, and had in it some of the most powerful Windows Mobile Pocket PCs on the market. I owned a Dell Axim x51v and loved it. I used it all the time.
But the Axim failed, because smartphones replaced PDAs as the favored mobile devices. Pocket PCs became irrelevant. Eventually, Dell discontinued the Axim and decided to get out of that market, but today, if it's really trying to get back in, it must know that it will be dealing with a more entrenched market with a few major thought leaders--RIM, Apple, and Google--commanding much of the consumer's attention.
While Windows Mobile enjoyed more market share than the iPhone in the fourth quarter of 2008 (mainly because there are so many more Windows Mobile devices than iPhones), it's not as ubiquitous nor as important to the industry as it was when the Axim was still on store shelves. In fact, I'd contend that installing Windows Mobile on the new Dell smartphone could be a major blunder.
Lessons learned from Apple's iPhone
Why would installing Microsoft's mobile OS on a Dell device be a blunder? Simple: Apple, RIM, and Google have taught us in their success that developing a unique OS is now a key success factor in the smartphone market.
If Dell decides to release a smartphone with Windows Mobile installed, I'm willing to bet it will be irrelevant in weeks. Windows Mobile is, based on my experience, largely incapable software when compared to the competition. Worst of all for Dell, its smartphone will get lost in the weeds at carrier stores, sitting next to all the other Windows Mobile phones from companies like Samsung and LG. A Windows Mobile-equipped Dell smartphone would be hobbled by its software and it would struggle to stand out in any way. In the smartphone business, that's a major issue.
To address that issue, Dell needs to create its own OS. Although it's a major investment, it allows Dell to differentiate its smartphone in the market. By running Windows Mobile or any other mobile OS currently found in other phones, Dell effectively diminishes its chances of standing out. After all, what would make a Windows Mobile-equipped Dell smartphone so compelling? Different shells?
Creating a unique OS will be expensive. There's no doubt about it. Luckily for Dell, though, it has over $8 billion in cash on hand and little debt. It can afford a hefty cash outlay to develop a mobile OS. I also realize that as a hardware company, it can be difficult to build software from scratch. But a unique OS is a necessity in this market.
A Dell OS will give the company more control over its phone's destiny. It allows the firm to develop its own app store and ensures that it can give consumers a unique alternative to any other device on the market. Given how crowded the cell phone space is and the ubiquity of derivative devices, that's an important leg up that Dell shouldn't ignore by installing Android or Windows Mobile.
But in the end, the success of Dell's OS will require a solid first run. There's no debating that it will have its share of issues--they all do--but if the company can provide Google Maps integration, GPS functionality, strong enterprise support, a good browser, a strong e-mail program, and intuitive design, it's already a more viable software solution than Windows Mobile. And the best part is, Dell can constantly improve its platform instead of waiting for another company to update the OS it would be running on its phones. That ensures its devices will only become more appealing the longer they're on store shelves.
It's costly, it's time-consuming, and there's no guarantee it will work. But a unique OS is a necessity if Dell wants to establish itself in the cell phone space.
App Store? Yep
Beyond software, Dell should consider releasing an app store as long as it develops its own OS. Apple has proven that if a company can release a desired smartphone, developers will flock to its app store just to have the chance to sell apps for it. Google has been able to do it too with its Android Market.
The Axim was fine, but it wouldn't work today.
(Credit: Dell)In an ironic twist, an app store is becoming a necessity in the smartphone market. Microsoft is now touting its own store and RIM has a small marketplace. If Dell really wants to make a splash in the smartphone market, it will need to release an app store and try to find ways to bring developers to it. Doing so would create that end-to-end solution that Apple has proven successful time and again and from a business standpoint, Dell would have the opportunity to share revenue with developers on all app sales.
Design is important
Apple has proven that smartphone design means almost as much as the software that device is running. While the Axim was a relatively well-designed device, it wouldn't cut it in today's smartphone market where customers require iPhone-like style. That might be unattainable for some companies, but one thing is certain: Dell needs to do whatever it can to make its smartphone as sexy as possible. An ugly or generic device just won't cut it.
If Dell does indeed plan to release a smartphone, an Axim with phone capabilities won't cut it. For me to want a Dell smartphone, it needs to have its own OS, a solid design, an app store, and all the bells and whistles Dell can throw into it. I won't be interested in anything less, and I'm willing to bet that I'm not alone.
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Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.
Also, Dell is a hardware company, not a software company. Apple and RIM do both; MS and Google do the software and let other people build the hardware for their phones. Dell could be one of those people.
Let the user decide what they want for a change.
Creating a new OS is absolutely the WORST thing Dell could do right now. Come on Don...
While you discuss the idea of Dell releasing a WinMO phone, and rightfully observe that they would have troubling standing out among the MANY WinMO phones, You fail to entertain an Android phone.
There is currently only ONE Android phone, so if Dell began releasing phones with this OS, they would be one of only a few manufactures, and would avoid the cost of competing for a piece of the OS market (which is in no way their business).
The rest of your article describes all the things they would need to do right with their OS, most of which Android is already doing.
Dells success in the computer market has been based on building affordable computers loaded with industry standard OSs (Windows, and recently Ubuntu).
If Dell gets in early with Android, and builds a reputation for solid, affordable devices, they could mirror their success in the PC market into mobile devices.
If I were Dell, instead of worrying about the OS as much, I would devise a way to make a phone that has an interchangable network unit. One of the biggest complaints now is that they love the phone but hate the service. If they took a more generic OS (probably Android or maybe Windows Mobile)and coupled that with a smart phone you could switch carriers. If they could do this cheap enough, without having to bind it to a service (in the range of <$200), they might have a hit. Allow it to be more customizable in various trifling ways. Example: various body case enhancements for different colors and designs. And do not restrict it to cases made just by Dell, but allow anyone to produce them with a low barrier to entry. Dell needs to listen to what people are saying and doing with their phones and then brainstorm around those ideas if it wants to get into the market. Creating a personalized OS is a sure fire way to death for thier product. OS creation is expensive, fraught with problems, and takes a long time to market.
Dell is not a software company, so throwing their $8 billion won't help.
Etc.
Look at the focal points for the primary competition in the smartphone market: Apple, RIM, Microsoft, Google.
Apple: hardware, software, media
RIM: hardware, software, business
Microsoft: hardware, software, media, business, search
Google: software, search
And what is Dell's current focal point? Hardware. Why should Dell veer off into a space it's never competed in? It's never built software from the ground up, let alone an entire OS. Simply because Dell built a netbook running a 10 year-old Microsoft OS with a 3G chip in it doesn't mean that they are suited to build an entire mobile platform.
Dell should focus on several interesting form factors that can accommodate various OS. Android is built to be flexible. Why couldn't they skin it with a Dell UI? Android promises so much and we haven't seen anything convincing wrapped around it. This is a perfect opportunity for Dell. (And Dell could flip their experience building an Android smartphone to develop an Android netbook.)
The premise of the article is it would be far too risky for Dell to enter the smartphone game without building an entire platform. I think it's the exact opposite: It's far too risky for Dell to build an entire mobile platform.
Sony Ericsson, one of the leading mobile phone brands in the world, recently released a Windows Mobile-powered device as it's top model.
The Palm Treo models had a large and loyal bunch of customers, and the forth-coming Palm Pre might be a success, given Palm's experience in both smartphone- and PDA infrastructure, software and third-party relations.
The questions about the right strategy for Dell if they were to enter the mobile phone business is much more complicated than a journalist would understand.
Could you please research your subject before wasting our time?
Ooops.
During the most recent quarterly results conf. call, Tim Cook said Apple is still "years" ahead. And I agree. Even Microsoft, with decades of software experience and deep pockets, is having trouble making a competitive OS. Don's casual proposition and assumption that hardware-oriented Dell can whip out a competitive OS, unique UI, SDK, app store, etc. is laughably ridiculous.
http://www.appleinsider.com/articles/09/03/21/dells_iphone_killer_rejected_by_carriers_as_too_dull.html
One of the cited perils of Windows mobile is the multiple versions of the OS and lack of standardized hardware, I remember seeing figures citing 1/4 of the Windows Mobile phones are not app store compatible and developers has to still make several versions of an Application.
Some of the readers point to Android, and considering so far Android has been much ado about nothing sadly. I agree, rather than reinvent the wheel, Dell could tweak Android and give it a few must-have apps as part of the bundle. Apple has proved repeatedly its less about the hardware than software.
Dell simply needs to ask itself why does their phone need to exist? Why buy one when you could have an iPhone or Blackberry?
An app store, yes, a new OS, no.
Dell developing an OS is a joke.. they are hardware guys and have no experience in building good software's.. Apple obviously with its imac experience can do great things.. others trying to imitate this will fall on face.. with the exception of just microsoft..
You can never count out Dell, 'cause they have the marketing and money to quickly gain ground on their competitors. To do so, though, they are going to have to produce a well made device that is unique to the market, similar to what the iPhone did to the smartphone market a few years ago. Otherwise, any other device will just blend in with the competition - especially if it's a Windows Mobile phone.
- by ColdRedRain August 19, 2009 11:21 AM PDT
- Dell should avoid the smartphone market alltogether and focus on reviving the PDA market or perhaps a PDA/Mp3 player. That's how the Ipod Touch became the world's most coveted mp3 player. They could do an end around on all the carriers and enable bluetooth tethering on their phones. Think about it: there are doctors, lawyers and other people in the marketplace that need PDAs but don't want to be teathered to smartphones. And also, App stores aren't a good thing. All they do is restrict creativity. Do it like how they did it back in the old days: Let programmers program any prog they want and sell it to the open market.
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