Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Dell Gives Up on Smartphones

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Dell (Nasdaq: DELL  ) has dropped the mobile ball. Badly.

The iconic PC maker took a shot with Google (Nasdaq: GOOG  ) Android devices, none of which saw even remote commercial success. Dell axed its domestic tablet offerings late last year, mostly blaming the operating system itself for its shortcomings. The company is now embracing Microsoft (Nasdaq: MSFT  ) Windows 8 as its next big mobile bet.

At a recent security and risk management conference, CEO and founder Michael Dell said to expect his company at the launch of Windows 8 to have a slew of devices ready, such as tablets, hybrids, and convertibles. Dell called the next-generation OS an "evolutionary path for Windows into tablets."

A tablet is in the cards, but Dell made it clear that smartphones are now off the table altogether, saying, "You're not going to see us in phones, not in terms of hardware." Instead, Dell will look at security and management software that supports both Apple iPhones and Androids. So instead of trying to go head-to-head with the iPhone, Dell will try to ride its success by supporting the device.

In recent times, Dell has been snapping up companies to shift its strategic focus to look more like IBM (NYSE: IBM  ) , boosting its security offerings with the SonicWall acquisition, in addition to virtualization plays like Wyse Technology. Unlike Hewlett-Packard's (NYSE: HPQ  ) high-profile botched attempt to get out of the PC business, Dell has no intentions of following suit. The company remains committed to traditional PCs but knows that virtualization is the future.

Getting out of the smartphone business is a safe bet, because it's clearly not Dell's forte. It's a shame to miss out on that piece of the mobile pie, but Dell might be able to make up for it by jumping on the tablet segment of this ride.

Dell just announced recently its intentions to begin paying dividends. If you're looking for dividend payers that have a longer history, then check out the 3 Dow stocks dividend investors need. This special free report names three highly sustainable businesses that love to give some back to shareholders. It's free, so be one of the first to read it.

Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Microsoft, IBM, Google, and Apple. Motley Fool newsletter services have recommended buying shares of Google, Microsoft, and Apple and creating bull call spread positions in Apple and Microsoft. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1912062, ~/Articles/ArticleHandler.aspx, 10/21/2016 11:41:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
DELL.DL $0.00 Down +0.00 +0.00%
Dell CAPS Rating: *
GOOGL $824.06 Up +2.43 +0.30%
Alphabet (A shares… CAPS Rating: *****
HPQ $13.80 Down -0.30 -2.13%
HP CAPS Rating: ***
IBM $149.63 Down -1.89 -1.25%
IBM CAPS Rating: ****
MSFT $59.66 Up +2.41 +4.21%
Microsoft CAPS Rating: ****