Whenever Dell does unveil its much-hinted-about new handset, it will apparently be taking a non-traditional route to the market, according to an analyst report on Monday.
Dell has decided to sell its new product through retailers only, said Ashok Kumar of Collins Stewart. While that’s certainly interesting, and in line with Dell’s recent record of testing new ways of approaching the market with its products, the reason Kumar gives is far more tantalizing: He claims that U.S. and European carriers were none too impressed with Dell’s effort when the company tried to sign up some wireless partners during meeting at Mobile World Congress in Barcelona last month.

Dell hasn't sold a handset since it axed the popular Axim in 2007.
(Credit: CNET)
“The carriers, who see products from all the leading handset vendors, have decided to pass on Dell’s handset,” he wrote in a research note Monday. “Some carriers are citing a non-compelling product with a road map that lags competition.”
Dell hasn’t responded to a request for comment. But, if Kumar’s claims are true, this presents serious problems for Dell. The company already has relationships with some of the major carriers like AT&T and Verizon/Vodafone, which sells wireless service plans for its notebooks and Netbooks here in the U.S. and in Europe, and rejecting what will by its nature be a high-profile product from a current business partner doesn’t speak very well of the product’s competitiveness.
It will also handicap the device from the start, since U.S. consumers are conditioned to buy subsidized phones and may balk at paying full price. But the bigger problem is that there’s just not that much market share left to grab, especially without the marketing might of large carriers behind it.
“It’s a crowded market. Two years ago they may have had an opportunity, but RIM, Nokia and Apple have been joined by HTC, Samsung, LG, Palm, Motorola, (and Acer),” Kumar said in an interview. “The market is extremely crowded just as it’s slowing down.”…