Monday, March 23, 2009

Dell Phone Gets Poor Reception

Dell's effort to become the commodity vendor for smartphone hardware hit a snag as carriers greeted it with a yawn. Although Dell's success in low-overhead production has left it consistently at the top of computer hardware unit sales volume, its commodity competition has left it trailing competitors in profit per unit. This setback in expansion beyond general-purpose computing hardware isn't Dell's first. Previously, Dell sought to expand from computer hardware to computer peripherals (like printers) and music players. Dell is a commodity vendor.

The fact that Acer has already beaten Dell to announce commodity smartphone hardware doesn't help Dell in the quest for differentiation or for freedom to price for profit.

This smartphone announcement suggests that Dell is unable to develop available concepts non-commodity hardware business.

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