Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • PC Hardware

    Dell Misfires on PDA Strategy

    By
    John Taschek
    -
    December 9, 2002
    Share
    Facebook
    Twitter
    Linkedin

      Dells entry into the PDA space with sub-$200 and sub-$300 devices scared the heck out of competitors. Then they actually saw the devices and went back to their normal lives. Ho-hum was the collective reaction.

      One has to wonder what Dell is doing in the space. The company is clearly trying to undercut rivals on price. In general, however, the Dell strategy misses the mark. First, Dell appears to be losing money on the devices. According to sources at a competitor that evaluated the same design that Dell chose with its low-priced Axim, the hardware alone costs $175 per unit. Add $15 for the supporting warranty, $25 more to Microsoft for the operating system, and you have a $215 device. And, thats the least it will cost—marketing and sales costs will jack up Dells internal price even more.

      Dell is selling the Axim X5 for $199 after a $50 rebate. Dell may also be losing money on the Advanced model of the X5, which sells for $299, or significantly less than the competition for similar functionality. For what, though? Consumers will be better served by Palm OS-based devices, which are easier to operate and less expensive.

      Switch to the enterprise, and Dell is outclassed by the competition. (See Jason Brooks review of one such device, Palms Tungsten T.) There is a wide assortment of Palm OS- and Pocket PC-based devices, and each vendor has at least some differentiation between its consumer and its enterprise devices. Dell, however, sells the same units to consumers and enterprises.

      This shows that Dell believes the PDA market has stabilized—or it will, once Dell enters it. Dell is counting on enterprises requiring capable devices at a 30 percent discount over similarly equipped models. Dell also believes these enterprises do not require expanded services and will buy the devices direct and leave it up to individuals for support.

      Im not that committed to the stable-market theory yet because theres no clear indication of what consumers will support. Generally, end users want small size, which the Dell unit doesnt have, and enterprises want networking capabilities and service and support, which Dell may or may not be able to offer.

      Dell is one of the best-run companies in the world. Why would it risk getting into the PDA space so early? Write to me at [email protected]

      John Taschek
      As the director of eWEEK Labs, John manages a staff that tests and analyzes a wide range of corporate technology products. He has been instrumental in expanding eWEEK Labs' analyses into actual user environments, and has continually engineered the Labs for accurate portrayal of true enterprise infrastructures. John also writes eWEEK's 'Wide Angle' column, which challenges readers interested in enterprise products and strategies to reconsider old assumptions and think about existing IT problems in new ways. Prior to his tenure at eWEEK, which started in 1994, Taschek headed up the performance testing lab at PC/Computing magazine (now called Smart Business). Taschek got his start in IT in Washington D.C., holding various technical positions at the National Alliance of Business and the Department of Housing and Urban Development. There, he and his colleagues assisted the government office with integrating the Windows desktop operating system with HUD's legacy mainframe and mid-range servers.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×