Carriers uninterested, so they will go direct
Last modified on Wednesday, 15 April 2009 08:26
We have confirmed with our sources that Dell will take its new handset that the company designed to compete with the iPhone and likely go it alone, since wireless carriers just have no interest in it. The decision to sell direct to retailers could be an interesting move that if successful could reshape the way that handsets are sold and promoted by wireless carriers.
According to our Dell moles, every carrier seemed unimpressed and suggested that Dell go back to the drawing board and try again. The moles have indicated that all might not be lost with the carriers, as carriers in the Chinese market seem to at least be interested in the device, but this would be a hard market for the company to crack.
The fact that the carriers who already viewed the handset suggested that Dell go back to the drawing board and try again was compounded by the Dell road map lagging behind the competition and offering nothing compelling to get the carriers to bite.
The idea of going direct with the handset could be nothing more than a large loss for Dell. Our moles report that Dell has already spent a lot of money on the development of the device and was shocked by the response it received. While going direct might help ease some of the development costs while the company revamps things, it could also be a sign that this is not a market in which Dell is likely to be successful. (Anyone remember Dell's MP3 players? Ed.)