Dell pulled smartphone after limp reception

A note from Kaufman Brothers analyst Shaw Wu published by MarketWatch has stated that the initial designs for two smartphones have been abandoned after the development units failed to excite carriers.

“From our conversations with supply chain and industry sources, it appears that it ultimately came down to lack of carrier interest," Wu wrote.

Palm Pre has not helped" Dell's efforts, Wu wrote, as it has generated "interest from carriers as a viable competitor."

Carriers were also unwilling to subsidise the handsets at a rate which would allow Dell to retain customary profit marketing Wu said.

The two handsets were designed to use the Android operating system and Microsoft’s Windows mobile operating systems. Few other details were released and Dell has never officially commented on the reports that it was planning to enter the mobile market.

Wu reports that the company has now "gone back to the drawing board" and may be mulling making acquisitions that would increase its skills set in the new market.