Dell phone rejected by Telcos

Dell has learned the hard way that wireless carriers still wield a ton of control in the wireless industry. It appears that unless you are Apple Google, or even Palm, it's not that easy to win the carriers over. After rumors spread earlier this year that Dell and other computer makers were entering the smartphone market, it now appears that the company's first attempts will never see the day of light.

Shaw Wu, an analyst at Kaufman Bros., asserts in a research note today that the company's first attempt was basically rejected by the carriers. The reason? It was too "Dell-like," reports Tech Trader Daily. Despite two prototypes—using both Windows Mobile and Google's Android—Wu writes that the carriers weren't impressed. "From our conversation with supply chain and industry sources, it appears that it ultimately came down to lack of carrier interest and small subsidies, making it difficult for Dell to make a profit." Apparently, they lacked differentiation.  more

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