Dell to partner with GOOG this week on Dell/Motorola cell phones?
I did some research and it appears as though the CFO for Motorola is Dell's previous CFO and is good friends with Michael Dell. What is interesting is that Dell hired Ron Garriques who formerly ran Motorola's cell division and now runs Dell's Consumer Business. I am putting all this together and I think we will see something this week. With Motorola letting go of their cell business it looks like Dell could be announcing the acquisition of the cell business. Furthermore, GOOG has just opened an office in Austin to work with Dell. Interesting stuff.
Thats all old news, and the take over on the Dell board lately is short, so watch out, theyre slamming that stock a hell of a lot worse than apple, and the revenues may not be so good either, Round Rock tax department was quoted as saying that revenues are lower than last year for receipts etc. Its a risky play.
Maybe Dell understands it needs something like the iPhone or at least be active in that business with Motorola. I don't know how Google fits in, maybe for services or software. I don't expect Dell to revolutionize what Motorola now offers, the cellphone business takes a certain kind of expertise. Look at it this way, Apple has been up against some stiff competition from RIM, Nokia, Samsung and of course PALM, Motorola and others. I doubt Apple has much concern over Dell getting in this business.
The rumors of Dell getting into the cell phone business demonstrate, if true, that Dell is on the way down.
And what does Dell bring to the table? They're a glorified assembly plant, simply putting other manufacturers products together.
If I ran a cell phone manufacturing company, what would I see as the value-added from Dell? I'd see a value-lost proposition, just inserting another middle-man in the business.
Dell has taken a huge hit to their brand-name; their out-sourcing technical help to non-English-speaking countries may have looked good a few years ago, to slash expenses and get "leaner" but the erosion in customer satisfaction ruined their image. Now they're so lean they're anorexic.
Yet another example of short-term thinking, sacrificing their brand in the long-term.
Dell is so 1990s - they've had their day. Like MSFT.