New Dell smartphone expected to struggle

Dell recently released its first smartphone, the Aero, which many mobile industry experts have claimed is unlikely to succeed in the competitive market, while others believe it may find its niche with small- and medium-sized businesses.

CRN.com cited the Aero's exclusivity with AT&T, the use of an outdated version of the Android operating system and its lack of features unavailable on other smartphones as the primary reasons for the device's potentially underwhelming results. However, ABI Research believes the expenses related to iPhones and BlackBerrys may help the Aero’s appeal among SMBs. As more companies begin to provide employees with smartphones, avoiding the high cost of iPhones or other enterprise fees charged by service providers may make the item a success.


“With Dell’s established relationships to small businesses through its laptop and PC business, the Dell brand, and Android’s consumer appeal, this device may help AT&T capture new customers in [the] underserved [SMB] segment,” ABI Research analyst Michael Morgan said.


Even with several industry experts and critics questioning its utility, the Dell Aero may be driven solely by the growing demand for smartphones for both enterprise and consumer users. A report from ChangeWave Research found more than 16 percent of Americans plan to purchase a device in the next 90 days.