Feeds

Dell onto a Good Thing

Delves into BlackBerry territory

  • alert
  • submit to reddit

The Power of One Infographic

Computer maker Dell has said that it will enter another sector of the handheld market, a move that could spell bad news for Canada's RIM.

The Texas-based company will begin selling handheld devices made by start-up Good Technology in the coming months. The product will be targeted at corporate users, connecting them to office e-mail systems for the delivery of messages while on the go.

For Dell's part, the move should bring it closer to its goal of achieving $60 billion in annual revenues. The development follows Dell's entry into the PDA and printer market last year. In less than a year, Dell has captured 5 per cent of the global PDA market with its low-priced Axim models, mainly at the expense of market leaders Palm and HP.

The company's entry into the world of mobile e-mail over handhelds could be just as troublesome for its former partner, Canada's Research in Motion (RIM), which makes the Blackberry wireless e-mail device.

Although available in Europe, BlackBerry's strongest market by far is in North America, where its popularity led users there to dub it the "Crackberry" on account of its addictive nature.

Dell's history of pushing prices below those of competitors, thanks to its airtight supply chain and lack of R&D expenditure, has turned the firm into a fearsome competitor with a 'no mercy' reputation. HP, IBM, Palm, Gateway and many others have suffered falls in market share in all hardware sectors in which they compete with the Texas-based manufacturer.

An even more worrying sign for other hardware makers is that Dell president Kevin Rollins said this week in Texas that the deal with Good Technology "is part of an overall wireless strategy." He went on to say that the firm would continue to expand and broaden its wireless product offerings, although he flatly denied that company would get in on the mobile phone sector.

It's expected that Dell will form partnerships with other, smaller wireless firms that have done the legwork in bringing a new wireless product to market but need a bigger outlet to sell through. This is a strategy that Dell has employed in other sectors, from storage computers and printers to PDAs, and for Dell it has been hugely successful.

Good will undoubtedly benefit from the deal as well, as will its brand and revenues from wireless e-mail products, which are both currently less significant than RIM's. Though the firm already makes its G100 devices and the GoodLink software to tie it to e-mail servers, it's expected that the deal with Dell will eventually result in a new handheld. © ENN

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.