Dell is developing a wireless device for China Mobile, China’s largest cell phone carrier. Matthew Parretta of Dell said the company showed a “proof of concept mobile device prototype” at a China Mobile event in Beijing.
However, Dell officials have declined to provide details about a Dell phone, nor when it will be introduced. Or, indeed, if it will happen.
A cell phone would be in keeping with CEO Michael Dell’s (shown here who is a very pleasant cove to interview) comments that the company plans to diversify its products beyond personal computers, which are providing shrinking profit margins. The company’s revenue has declined for three consecutive quarters while sales of smart phones continue to rise.
During the last two quarters, Dell has lost ground to rival Hewlett-Packard (in itself not doing that well) as Dell attempts to transition to network services.
The Business Journal (which calls itself The Business Journal of the Greater Triad Area, which has a grealt old-fashioned China feel about it but in fact all it means is that it is focussed on the Greenboro/Winston/Salem area in the United States) stated that Dell reported a 63% decline in first-quarter earnings compared with last year.
Most commentators believe Dell has to get into the smartphone communication business but also that its first product has to be one or two steps ahead of Apple’s iPhone. This will be no easy trick.