A trade pub CRN has published an article listing five reasons why Dell shouldn't make smartphones. Here are some quotes and the link to the full article:
"The smartphone market is already crowded, with the likes of BlackBerry, Apple and Palm jockeying for market share. Can Dell get into the market this late and be successful, while also offering innovative products? Probably not. Sure, Dell has been innovative in other facets of the high-tech biz, but when it comes to smartphones, establishing yourself as a major player in an overcrowded field seems more like a waste of time.
Here are five reasons Dell should pack up its toys and go home, before a smartphone flop blows up in its face.
1. You can't beat the Apple iPhone
Many have tried to dethrone the iPhone from its high perch as king of the touch-screen devices. The BlackBerry Storm has yet to reach the summit, and other competitors from the likes of Sprint, T-Mobile and more are still tackling the first hundred feet. Word is Dell is looking to build its own iPhone clone, a touch-screen smartphone that would rival Apple's consumer device darling. Fat chance, considering Apple managed to unload 2.4 million iPhone 3G models in just its first quarter. Success like that would take something more than a rip-off, and we doubt that Dell has what it takes.
2. Isn't Dell trying to save money?
Granted, smartphones are relatively inexpensive to manufacture, with the iPhone costing around $174 and the BlackBerry Storm costing about $203 per unit, according to a recent iSuppli report. And, oftentimes, smartphone margins are pretty high. But in this time of economic uncertainty, branching into a new market could work against Dell, especially when the company recently revealed a plan to cut $3 billion in operating expenses to combat slumping PC sales.