Sign in Subscribe
Software industry

Dell's New Device: A Risky Move Against Apple?

Strategic Insights

— 1 min read

Dell Inc. (Nasdaq: DELL) is reportedly developing a mobile internet device (MID) that will run on Google Inc.'s (Nasdaq: GOOG) Android software. The device is said to feature a range of services similar to the iPhone, but without a built-in cellphone. This move comes as a challenge to Apple's (Nasdaq: AAPL) dominance in the MID market. However, analysts believe that Dell's chances of success are slim due to its poor track record of launching new products and intense competition from established players like Hewlett-Packard (NYSE: HPQ), Microsoft (Nasdaq: MSFT), and Apple.

Key Takeaways:

  • Dell is rumored to be launching a mobile internet device (MID) in the second half of 2009, running on Google's Android software.
  • The device is expected to feature a range of services similar to the iPhone, including music, videos, and connectivity, but without a built-in cellphone.
  • Dell's product launch history is marred by failures, including the Digital Jukebox and Axim PDA lines.
  • The company faces intense competition from established players like Apple, Hewlett-Packard, Microsoft, and Google.
  • Dell's products lack the features desired by consumers, and its retail distribution is limited compared to its competitors.

Statistics:

  • Dell has a long history of struggling in the consumer market, with a significant decline in market share over the past few years.
  • Dell's failure to launch successful new products has hindered its ability to compete with established players in the market.
  • Zacks Equity Research has a 3-to-1 margin of outperformance by the Zacks Rank, which is a proprietary stock-picking system developed by Leonard Zacks.
  • The Zacks Rank is based on a universe of 1,150 publicly traded stocks and provides recommendations and target prices with a six-month time horizon.

Sources:

  • Zacks Equity Research: http://www.zacks.com/
  • Zacks Investment Research, Inc.: http://www.zacks.com/performance
  • Apple: Nasdaq: AAPL
  • Google: Nasdaq: GOOG
  • Hewlett-Packard: NYSE: HPQ
  • Microsoft: Nasdaq: MSFT
  • Dell Inc.: Nasdaq: DELL

Read more