Dell pulls smartphone after limp reception

Dell has apparently abandoned the initial designs for two smartphones

Dell has gone back to the drawing board for its forthcoming range of smartphones, after an initial showing failed to generate any enthusiasm among potential carriers.

A note from Kaufman Brothers analyst Shaw Wu, published by MarketWatch, stated that the initial designs for two smartphones have been abandoned after carriers expressed no interest in the development units.

"From our conversations with supply chain and industry sources, it appears that it ultimately came down to lack of carrier interest," Wu wrote, adding that the Palm Pre has not helped Dell's efforts because it has already 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 Google's Android 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 said that the company has now "gone back to the drawing board" and may be mulling acquisitions that would increase its skills set in the new market.