Why Dell needs a handheld

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Sure, it dropped out of all of those, but Dell didn't necessarily have to exit the TV market, some would say. "Not only should they have stayed in TVs, they were in earlier (than most). They just screwed it up," said Baker. Eventually its LCD TV prices weren't low enough to compete with other consumer electronics makers and it abandoned making its own Dell-branded TVs. "When things got tough they lost interest," but if they stuck with it or had a better strategy from the start, they could have been successful, he said.

"Not only should (Dell) have stayed in TVs, they were in earlier (than most). They just screwed it up."

--Stephen Baker, vice president of industry analysis, NPD Group

• Which is why now could be a good time to start fresh. A gadget with a flashy design with the right price would demonstrate how Dell understands consumers. Consumer demand for gadgets is higher than ever right now, particularly in a world where converged devices that connect to each other are the next frontier. Technology from Zing, which is used to share and download music wirelessly, could easily be incorporated into such a device. And now Dell has a brand-new retail presence where it could get attention from non-Dell customers, such as at Best Buy or Wal-Mart Stores.

Timing is everything, of course. Watch what Dell says at CES this year, where it could launch any number of new product categories. The company has something up its sleeve, though what is not entirely clear yet, Baker said. "That doesn't mean it has to be a handheld, but they need some other place to go."

[Paul Ding]

Am I missing something?

Gillette makes razors, pens, and shaving creme. Bic makes razors and pens. I've *NEVER* heard anyone say, "Oh, I would *never* buy a Bic pen or a Bic razor, because they don't have shaving cream."

Nor have I heard people complain that, unlike Honda and Suzuki, Toyota doesn't make motorcycles.

Companies don't exist to "compete" with other companies. They exist to generate profits. He who lives by faddish products dies by faddish products, as Apple's up-and-down corporate history has proven. If I were a Dell stockholder, I'd rather see them make vacuum cleaners and popcorn poppers than cellphones.

[DoughboyNJ]

Yes maybe you are...

eg Honda - a motor company. Goes out of its way to find things to put its motors in - cars, pumps, lawnmowers, weed whackers, boats, jets....

Dell - a technology/solutions company. Should go out of its way to show mastery of technology and solutions. A powerful handheld that does everything well would go far to get the Dell name out there again.

HP is bucking the PDA trend (DOWN) and taking a risk on new Ipaqs.

[Renegade Knight]

Yeah, You are Missing Something

But it's all in the angle of view.

Why doesn't Gilette make shaving cream? Why don't Ford and Chevy make Motorcyles and Scooters? They would have one division that's doing well if they did.

There is no rule that says they have to, and no rule that says they don't.

Dell had a great PDA. Alas Dell didn't take the next step. PDA's are not dead. They are stronger than ever, just not as stand alone devices.

Should Dell have a smart phone? Only if they want to be in the computing business since real growth in the computer market is with all the new multi function gizmo's.

Dell could make an Archos 605 killer, they could make an iPod killer (they may not kill either one of them off, but the features would gain market share).

Dell does something that Acer and HP have not been able to do. Make things that just work and actually fix them if they don't. I'd buy Dell for that reason alone.

[robert1275]

Dell needs to include it all

Dell needs to have a new handheld that is a phone, has at least 128 megs of memory, micro SD slot, GPS with TomTom navigator software

[msimoens]

along with that

and make sure it's fast. I bought my smartphone from T Mobile and
it just seems slow. If they do do this, the phone needs to be able to
stand up to time

[Remo_Williams]

Dell had it, and lost it

A better move for Dell, a bolder move for Dell, would be to buy HTC outright. Consider that the entire Axim series was built for Dell, and HTC makes some of the most advancedf handsets/ handhelds in the world, and you can see how this might vault Dell right to the top of an exclusive list of equipment manufacturers.

-Remo

[MaLvaDo39]

Windows based = loser

If Dell comes out with something, it will most likely be windows-
based and therefore something most other companies are already
putting out in the market - another commodity.
Again, it will be Dell trying to put on a different hardware face,
but the insides will be the same ol' crap.
Look at HTC, how painfully slow and unimaginative that company
is by using windows.

[shralpmeister]

Hit the nail on the head

This comment is right on the money. Software is ultimately what
determines user experience. What is a pure hardware company
going to do to differentiate itself? Add another button?

It's time we saw some real innovation in computing. If I were a
hardware manufacturer I'd be taking a serious look at Google's
Android platform right now. As an open source platform it will
give device makers a chance to truly innovate the user
experience. How HW makers rise to this challenge could make
or break them in the next few years.

[oxtail01]

It's the implementation, not particular OS

I got an old Compaq IPAQ that runs Windows CE and the product is a thing of beauty (although bulky by today's standards) that runs every application you need, plays mp3 music and mpeg video, great handwriting recognition, syncs wonderfully with Outlook, and shows everything on a gorgeous color screen. You should try it before blasting a particular OS.

[Fat Drunk and Stupid]

CNET Needs Bottled Water

I have trouble taking this story seriously knowing that CNET doesn't even have its own brand of bottled water.

If CNET wants to increase its credibility and readership then it should consider adding bottled water to its lineup.

[Lite Rocker]

Son...

Fat drunk and stupid is no way to go through life...

[umcrouc0]

I don't know about this.

They've tried other markets but their products aren't competative. I have an Axim and it's alright but not great. It was low-cost compared to what else was on the market at the time but isn't really that good. Also had a Dell DJ that I almost never used. It has 20x the storage of my iPod shuffle but it isn't a good product. Poor workmanship and horrible software. Even if they came out with a good product, who would buy it? Most people I know who own Dell products will never buy from them again because of hardware failures and poor tech support.

[shane--2008]

2 things

first, this is just stupid. see other comments by many...

second, even if we accepted that it was a good idea, before Dell
could actually make something, they would need an R&D deot.

face it, Dell is nothing more than a cheap little crap company
that takes other peoples stuff and drops it in a box to ship to
ship to you. and people are finally catching on. Dell will be
dead in 4-5 years, and their cheap ugly crap boxes and affair
with MS will die with them.

...don't let the door hit you in the @$$ on the way out. good riddance to bad rubbish.

[technopro nonprofit]

Seize the Verizon opportunity

Agreed: Dell could make some real inroads here. And first up, it should seize the opportunity from Verizon to open its network in 2008 by making a device that could be used on Verizon Wireless networks. Just got the new HTC XV6800 from Verizon, waiting forever for it to come out. They sorely needed a Windows Mobile 6 device and FINALLY got it. Dell could have had it quicker and less expensive. (The earlier idea about buying HTC: not bad, either!)

[bytemeal]

Dell should just make one simple smart move for a change

just buy creative for chump change and push it through their distribution. Products are pretty darned good but lame marketing and no presence in key markets - all things Dell can bring to the table. They could even leave the team in Singapore to handle the handheld devices.

[Mystigo]

Not Dell's Business Model

Dell didn't get big through design and innovation. They got big by
cutting out the retailer, and the retailer's markup. That is (or rather
is still mostly) Dell's business model.

They have no significant R&D experience. And what they do have is
more geared toward packaging and production. A shift in their
hiring practices might be a good sign that something interesting is
coming, as opposed to wishing it were so.

[robert1275]

HTC should be contracted to make Dell handhelds

HTC makes phones for many different phone providers. Their devices are some of the fastest in the market for Windows Mobile 6 (WM6). Especially the HTC WM6 devices released over the past few months. Dell should simply contract through them for branding purposes.

[mike.gw]

It's not in Dell's DNA

Dell has never been much more than a low cost assembler. Dell is a logistical specialist, not a R&D powerhouse. Even now, Dell laptops and other portable hardware are designed and built by their Asian partners (Asus, etc). Dell was founded on the principle of getting commodity components and assembling and delivering them at the lowest cost. They never started by designing anything. Their logic boards were designed by Intel, back when Compaq was using gold connectors and innovative memory bus designs on their custom logicboards.

Dell simply isn't capable of being an Apple, or a Sony or even HP/Compaq in it's heyday. Some people were born to be architects, and some people were born to be construction workers. Dell's a construction worker.

[ralph spoilsport]

Dell is a construction company

Mike - I couldn't of said it better. Dell is a construction company.

One point that seems to be missed - Apple doesn't do just hardware, it's the software that makes their products innovative.
Dell could have HTC build them a phone running windows mobile, but what would be the reason for buying it? Remember Dell did try to compete with the iPod.

[thedreaming]

...for a construction worker...

they seem to be very popular. Every business I've visited has dell machines, every home I've visited also has a dell machine and I've seen plent of axim pda's being actively used, so I don't consider the pda market dead and burried.

If they want to stay a construction worker, let them. Have someone else build a Dell Smart Phone and Dell will just make it affordable.

[bob1960]

Keep with the Dell model, with a twist...

If Dell could contract a cell phone to be designed that would run any cell phone OS, and be open to all networks, and be unlocked, it could then keep it's business model, and package a "have it your way" cell phone that ran Windows, RIM, Symbian... add a camera... add a better camera... add GPS... Add a memory card... add a micro-disk... etc. Base unit unlocked and very basic and cheap. Each upgrade adds to the cost. This is how Dell got popular, and it could work in cell phones too, if the buyer could get an unlocked, unbranded cell phone made to order.

[Voodoo101]

This has been a topic....

...on several boards. Not Dell per se, but the need for more handheld choices in the market. With what many feel is the imminent demise of Palm, the market has a vacancy for a real performance handheld.

I agree that the best idea is to build it/them to handle multiple or at least a choice of OSs. That would be great, but it will have to hit good, reasonable price points or it will fail miserably. Even Palm was able to do $99, $199 and $299. Dell should be able to macth them and even enter a high end piece. Otherwise, it's an entire market segment that they are going to lose by default.

[kgsbca]

Dell is the antithesis of innovation and risk taking

their only contribution to the tech world was their distribution model. They were an efficient buy low, sell high company, who really places no value on designing new things, they prefer to wait for a market to become large, and then use their size and brand name to sell into it. They are incapable of leading, and since their distribution method no longer provides any advantage, their days are numbered, just as the mini-computer vendors disappeared with the rise of the PC.

Every successful company needs good sales people, and Dell definitely had that, but in world where technology changes rapidly, if you don't have anyone who understands technology, how to use it, and its' implications, you can't compete in the long run.

[Jamie_Foster]

Smartphone = BS

I guess if I was an important manager at some corp a smartphone would be an important tool. Something like a Nokia E90 or a Blackberry.
But for the consumer the smartphone is a waste of time. A decent mid range phone like a Nokia 6300 is about as much as the masses need. I mean 99% of what matters in a mobile is making calls and sending texts.
I really resent the concept of making the phone a pocket computer. It doesn't matter if the OS is WM6, Linux, OSX or Symbian. All this stuff is not going to make voice and texting any better.
You know if look at what a smartphone costs SIM free, you are looking at £150 for a HP ipaq 514 all the way up to £500 for a Nokia N95. I mean I could buy a nice little laptop for that amount of money.
I think that Technology has just become like the Fashion industry rather than been an engineering trade. I have a nice Hi-Fi with a NAD Amplifier, NAD CD Player, Monitor Audio speakers etc. But most people these days have a lame micro Hi-Fi or an even more lame ipod with ipod speakers. Thats because most people out there believe what the marketeers and advertisers tell them.
Dell should not even think of making a handheld. They should invest more in R&D, improve their customer service and bring their consumer products up to the standard of the business products. They should look at computer services for growth. They are not a consumer orientated company. If they made a smartphone if would make them a laughing stock because it have nothing that isn't out there already. I mean if companies with the pedigree of Siemens, Ericsson, Sony, Panasonic and now Motorola fail in this market then how can Dell succeed. There is only one really successful handset maker: Nokia. Samsung is also a success and LG is up and coming, but the rest are just a non entity.

[MadLyb]

Luddite

I will agree that business is a prime Smartphone market, but as a Consumer, I like the fact that I can carry one device that provides phone, music, email, IM and GPS elminating the need to carry multiple devices with me. I carry a HTC Wizard and have been extremely happy with it's multi-capabilities. Don't presume to know what I need in a phone based upon your own expectations.

As to your music statement, I will partially agree that the consumer has "dumbed down" in terms of quality with MP3 and AAC, but put the use in context. For portable music in less than ideal listening environments (Planes, Trains, Automobiles, City Streets), who cares about THD or S/N Ratio. Are you going to strap your fancy Hi-Fi (does anyone still use this term?) on your back along with a stack of CD's?

[Ian Joyner]

The Apple Way

The story is based on the premise that to turn Dell into an Apple
would be easy. That is far from the truth. According to "The
Apple Way" by Cruikshank http://www.shorelibraries.govt.nz/TopPicks/NewReleases/book
-review.php?dbcn=b21511159
Apple spends 8% of its revenue on R&D, while Dell only 1.5% (if
my memory is correct). Well that's easy ? just ramp Dell's
expenditure up to 8%. Doesn't work that way either. Apple has
(and has had) innovative people from Woz, to Alan Kay, to
Jonathan Ive and so many more. Innovation is the core of Apple's
culture, this just isn't in Dell's bones. As for those who say Apple
just follows fads ? well the Apple Way will disprove that ? how
can you follow a fad if you set it.

Hewlett Packard is more innovative (but even they got stack
machines from Bob Barton at Burroughs http://en.wikipedia.org/wiki/Robert_%28Bob%29_Barton)

Dell just happened to choose the path of least resistance to get
its market share. Dell is just lazy.

[fred dunn]

Dell is ALWAYS behind the rest of the pack

And always will be. If Intel (or AMD) doesn't wrap it up in a tidy OEM package for them to deliver they'd be out of business.
I often wonder if they have ANY project researchers there, if they do then they are either inept or hindered by the layers of bureaucracy that is Dell.
Even if they came out with a really nice product why would anybody in their right mind buy it only to have them decide it's not their niche and get out of that market like they have done so many times before?

[Penguinisto]

Meanwhile, in the server room...

The most common x86-type server brands in the server room are Dell (PowerEdge, usually) and HP (ProLiant), IBM and Sun.

Out of those, HP is too proprietary (just try to use non-HP RAM in an HP server... I dare you). Meanwhile, IBM and Sun are too expensive. This leaves Dell as the most common server type out there for all business sizes, because quite simply, it's the cheap little server line that could.

/P

/P

[pbookman]

Dell Should Acquire Motorola

MOT is relatively cheap right now, they seem to be positioning themselves for an eventual sale, and Garriques certainly knows where the value is in MOT. With phones becoming the new personal computer and cell networks starting to open up, the time is right for Dell to make this move.

[bob1960]

Not Dell, but maybe Nokia....

The way the FCC and the phone carriers seem to make life so much more difficult than it should be in the US, it would make more sense for some company like Nokia to purchase Motorola and let them deal with that market while they have fun expanding in the European and Asian markets.

[ServedUp]

Handheld?

Sure Dell can follow the same business models as Apple.
Even copy their products down to the specs.

But nobody will ever love Dell like they do Apple or for that
matter have a cult. Can you imagine that though a Dell cult?
Ridiculous.

But the only way they'd probably be able to do it, is they'd have
to start over from scratch, right down to the meglomaniacal
brand name which has already been tainted with the words
cheap, affordable, big, ugly and Walmart.

Plus, they don't even do their own software which they rely on
Microsoft for that, and we all know how Microsoft "innovates",
years behind the competition.

But what I'd probably do, if I were Michael Dell, is I'd probably
shut the whole operation down and give all the money back to
the shareholders. That would be the prudent thing to do while
its still early.