Dec 06, 2011

Dell is dropping its last Android tablet in the USA. Does it matter?

Dell is a pretty big player in the world of PCs, but they are no longer going to sale tablets in the USA. The Streak Android tablet was the last Dell tablet you could buy here, and Dell has officially killed it off. Considering the size of Dell, and how much of a player it is in the PC/laptop market, does Dell pulling out of tablets indicate that tablets are just not where the future lies or did Dell just do something wrong in this market segment?


Hello Friends,

Dell's decision to stop selling the Streak 7 comes just a few months after the company announced that it had discontinued the 5-inch Streak 5 tablet.
Dell is looking like the sick man of the PC business – which itself isn't looked too healthy this year. In its latest quarter from August to October, Dell's revenues slumped by 11% year-on-year to $13.7bn (£8.6bn) and its operating profit by 48% to just $589m, and it warned that the "challenging global macroeconomic environment" will continue in the current quarter, which runs to the end of January.
Dell's executives were quick to blame the looming "fiscal cliff" in the US, which they said was holding back spending by big businesses – but that does not explain its falling revenues in almost every other country and sector.

Thanks and Regards,
Agili Ron



I agree with jimlynch that Dell never really got all it's ducks in a row with tablets.  The Streak was an odd man out from the start, with the odd choice of a 5" display, making it too big to fit in a pocket unless you are still rocking your cargo pants when you go to work.  At the same time it was too big to easily carry, it was too small to use as a proper tablet.  Even those medium sized tablets like the Kindle Fire have 7" displays, which are much easier on the eyes when looking at webpages or using it to read e-books.  5" pretty much nails what I would choose as the wrong size for a tablet - not small enough at the same tine it was not big enough. Seriously, who would choose a 5" tablet?  Add in that the Streak only ran a single core 1GHz processor, and it is not only weirdly sized, it is underpowered.  While I would prefer there be more tablet manufacturers, the more the merrier and all that, I can't pretend that I will miss Dell's recent tablet efforts.

My guess is that Dell just blew it on their end. I think we'll see players like Amazon and others do quite well in the Android tablet market. But Dell? Really, it's just not their niche. I don't see them as ever really getting it together despite having market share in the PC and laptop markets.

Sometimes it's better for a company to stick with what they're good at rather than continually trying to enter other markets where they lack expertise in product design and management. I doubt tablets will ever really be Dell's forte and that's not necessarily a bad thing.

Apple on the other hand... ;)
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