Dell Mobile Phone Is Doomed, Analyst Says
Unable to get the attention of the wireless carriers, Dell (DELL) has decided to enter the mobile phone market by selling its wares direct through retailers, according to Collins Stewart analyst Ashok Kumar. The analyst writes that the carriers have decided to pass on Dell’s handset, “citing a non-compelling product with a roadmap that lags competition.”
Kumar is not optimistic about Dell’s chances for success with that approach, asserting that the company is “facing a stacked deck with little experience on how to play this game.”
Kumar wonders whether consumers will want a phone that the carriers consider to be not good enough to sell directly. “Consumers are used to subsidized handsets and are not used to paying full price,” he notes, and assumes that retailers will provide prime shelf space for Dell’s phones.
