Editor’s Note: Welcome to our weekly feature, Analyst Angle. We’ve collected a group of the industry’s leading analysts to give their outlook on the hot topics in the wireless industry.
The wireless market is littered with companies failing to extend their strong brand into the potentially lucrative U.S. smartphone market. Compaq, Hewlett-Packard, Motorola and Nokia, to name a few, all tried and failed to become a meaningful player in the U.S. smartphone space. There is recent news about the introduction of a smartphone from Dell’s consumer business unit. Dell introduced a proof of concept device in Beijing back in August, but that for was for its Chinese partner, China Mobile. Questions remained about plans to launch in the U.S.
Recent reports from the Wall Street Journal indicate a U.S. launch in immanent. However, the looming question is whether Dell can avoid the fate of those who failed before them. One of the keys to success in the smartphone market is a sleek, sexy and contemporary design. Dell is not familiar with those adjectives. Apple vaulted to the top of the market based on those virtues. However, while design is important there are other attributes that contribute to the success of smartphones. Research In Motion, the leader in the U.S. smartphone market, continues to hold its own against the sexier iPhone.
Keys to success
So what attributes are key to smartphone success, besides a cool design? There are three other attributes that will position a smartphone for success: street cred with enterprises; integration with other services; and a user friendly operating system. The Dell device will likely have all three of these things in spades. It’s these attributes, in conjunction with the design that will result in a resounding success for Dell.
Let’s address design first. The fact that the device is emanating from Dell’s consumer business unit demonstrates recognition that all mobile devices must be consumer devices first. Nokia’s n900 and e62 were examples of devices that had enterprise chops but missed the mark on design. They were the smartphone equivalent of orthopedic shoes – functional, but not fun. I expect the Dell device to be similar to Blackberry devices in that it will be just cool enough for consumers to adopt. Like Blackberry it will be a well crafted compromise of design and usability.
Dell certainly has an abundance of street cred with enterprises. While they won’t necessarily be selling directly to enterprises, it will give comfort to operator sales representatives who, despite having a wide array of devices available, make their own assessment of what will resonate with enterprise buyers. Dell’s enterprise brand is unparalleled and is not a risky alternative for enterprise buyers. This market can be a stronghold for Dell as it musters momentum among consumers.
Dell has its own enterprise services with which the device can interoperate. While the remote back-up and recovery services might be interesting to enterprises, it’s a snooze-fest for consumers. However, the not so well kept secret is that Dell selected the Android operating system for its device. In doing so it wisely hitched its wagon to a rapidly growing developer community focused on consumer friendly applications. Again, Dell and Android will be a perfect marriage of fun and function.
The last category that’s critical to mass market success for smartphones is a user friendly operating system. The Motorola Q had a sleek design and an operating system that the average consumer found cumbersome. This explains Motorola’s recent commitment to a bevy of Android devices. Nokia’s recent announcement that its devices will run operating systems other than Symbian is a nod to the fact that the OS matters. Android, the OS of choice for Dell, has momentum and mass market appeal.
Many are quick to dismiss the viability of a Dell smartphone given its reputation for uninspired design, but function matters. Dell brings a dose of pragmatism and Android a dash of fun. Together I expect them to cook something special.
Josh Holbrook can be contacted directly at: JHolbrook@yankeegroup.com.
