Dell Phone "Back To The Drawing Board"

Dell (DELL) is going “back to the drawing board” on the supposed new Dell Phone, one analyst says. Does this mean Dell might try to buy Palm (PALM)?

Marketwatch:  Kaufman Bros. analyst Shaw Wu wrote that Dell’s prototype devices, designed to run software from both Microsoft Corp. and Google Inc., have so far failed to distinguish themselves from a growing field of competitors.

“From our conversations with supply chain and industry sources, it appears that it ultimately came down to lack of carrier interest,” Wu wrote…

 “Palm Pre has not helped” Dell’s efforts, Wu wrote, as it has generated “interest from carriers as a viable competitor.”

Wu wrote that Dell has not abandoned its effort to release a mobile device, though it has “gone back to the drawing board” to design a more distinct model, which may involve making related acquisitions.

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