Dell has cut production of the two smartphone handsets it sells in the US in an apparent bid to focus on emerging markets.
The company said that it would no longer be offering its Venue and Venue Pro models in the US, though reports suggested the company is planning to introduce new handsets to the market later this year.
Dell has in the past focused its handset operations on developing nations rather than more established markets such as the US and Western Europe.
Dell is not the only company to see a possible gold rush from mobile growth in developing nations. Analysts believe that China could soon overtake the US as the top market for annual smartphone sales.
Carolina Milanesi, a research vice president at Gartner, told V3 that in established smartphone markets which are more focused on brand recognition, Dell can be expected to struggle.
Though the company could have brighter prospects in emerging markets, Milanesi noted that the company will face a different type of competition from 'whitebox' channel vendors.
"Emerging markets are going to see a big growth in smartphone adoption so that is certainly an opportunity," the analyst explained.
"However, competition is going up be strong not just with tier one brands but with whitebox vendors from feature phones to smartphones at very aggressive price points."
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