mocoNews - Carriers Reject Dell's First Attempts At Making A Cellphone For Being 'Dell-Like'

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 (NSDQ: AAPL), Google (NSDQ: GOOG), or even Palm (NSDQ: 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.

But Dell isn't giving up. Wu wrote that Dell is "going back to the drawing board is designing a cell phone with more differentiation," that will "likely involve vertical integration of some sort including software and/or services." To do so, Dell may make an acquisition. Dell isn't the only computer-maker eying the mobile market. Acer, Asustek and Lenovo are also experimenting. Perhaps, it's not too late for Motorola (NYSE: MOT), Palm and others can still bank on a buy-out.