Dell Ditches a Business It Never Really Entered

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By Paul Ausick Updated Published
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Dell HQ

courtesy Dell Inc.
At its Dell World conference in Austin today, Dell Inc. (NASDAQ: DELL) confirmed that the company is no longer in the smartphone business. At least smartphones using the Android operating system from Google Inc. (NASDAQ: GOOG).

The company’s vice-president of global operations was pretty direct:

We’ve been really clear about smartphones – we’re not going to do smartphones. We’re not going to be in the smartphone hardware business. We’re going to provide smartphone solutions, we’re going to be the preferred BYOD [bring your own device] provider of solutions in the marketplace.

The company means that it will now focus on developing touch-enabled devices that use the Windows 8 and Windows RT operating systems from Microsoft Corp. (NASDAQ: MSFT). Dell already has three Windows-based tablets out in the world, but sales have been disappointing. Of course, sales of Microsoft’s own Surface tablets have also been disappointing.

From a five-year high of more than $25, Dell trades today at $10.48 in a 52-week range of $8.69 to $18.36.

Paul Ausick

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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