“Saturday’s Wall Street Journal contained an interesting, yet frustrating article about Dell. It appears that the company is re-organizing (once again) and is creating a new mobile-devices division headed by Ron Garriques, the former head of mobile devices at Motorola,” Bob Faulkner reports for Minyanville.
“While I’m glad to see the change take place, what remains so frustrating is the glacial-like speed in which the company moves,” Faulkner writes. “Dell makes turtles look like world-class sprinters.”
“Garriques has been at Dell for nearly two years (since February 2007). That was one month after Apple rocked the world with the introduction of the first iPhone. Several months later, Michael Dell could see consumers lining up at retailers, sometimes days in advance, to be one of the first to acquire a new iPhone,” Faulkner reports. “So what was Dell doing in response? Nothing!”
Faulkner reports, “”[Finally], the company launched two Android-based smartphones last month: one in China with China Mobile and the second in Brazil with America Movil. Despite the fact that China Mobile is the world’s largest cellular provider, Dell’s Mini 3i is one of several Android-based smartphones vying for attention on the network. What’s to differentiate? Nothing!”
“Dell would appear to be planning to use its scale to compete on price,” Faulkner writes. “However, competitors such as LG and Samsung have more than enough scale on their own and are vertically integrated in some components that Dell must purchase. So much for that strategy.”
“The decision to enter a market after it has taken off is a risk adverse strategy that appears to dominate the thought process in Round Rock, Texas, and that’s troubling… Any expectations that “Dell is back” should be expunged from the thought processes. The scenery only changes for the lead dog and Dell has demonstrated once again that it’s not leading anything.”
Full article here.
MacDailyNews Take: SIDAGTMBTTS before there’s nothing left to give.
Oh, by the way:
• Apple now worth sextuple Dell’s market value – October 20, 2009
• Apple now worth quintuple Dell’s market value – February 12, 2009
• Apple now worth quadruple Dell’s market value – May 01, 2008
• Apple now worth triple Dell’s market value – December 06, 2007
• Apple now worth double Dell’s market value – July 27, 2007
• Apple now worth more than Dell – January 13, 2006