When Dell’s last Axim was axed for good, many commentators in the PocketPC arena wondered themselves why this series was ended – after all, it was very successful, scored rave reviews and also was popular with developers(it was the top device from a sales perspective for Resco in the last TamsPalm interview). No reason to kill the series – but Dell still did. IMHO, they didn’t do so because they wanted though…they did because they had no other choice. Sounds mad? Yep, but it isn’t – please follow along…
Lets begin our journey with a visit to the Axim’s source – HTC. The Dell Axim essentially is a design by HTC(which, according to some industry insiders was rejected by HP); Dell just stamps its brand logo onto it and manages the distribution. So, HTC produces and Dell makes the big margins… . This combination stands behind many PocketPC smartphones(with a carrier instead of Dell) for sale in Austria and has worked well so far…
However, HTC is not dumb. Why should others make the big money if they can do it themselves? This kind of thinking has become prevalent there – an industry insider I met at the CeBit(by ill luck in a press taxi
) working for a major distributor told me that HTC is on a ’sort of ego-trip’, wanting to promote its own brand. Palm’s Treo 750 manufacturer swap is an example of that new policy.
With Dell loosing HTC, it essentially had nothing. Nada. Zilch. No hardware design, no PCB layouts, no nothing. A lot of the applications on the Axim series were written by HTC(just check the About sections…), and lets not forget all the drivers and other custom stuff. So, Dell would have needed an enormous amount of R&D cash to get their Axims rolling again – cash that they didn’t want to spend for one reason or the other…
Of course, this is all just speculation – but with the raising market share of PocketPC’s and Dells classically good market shares, it looks very plausible. There still is money in high-end PDA’s…not the kind of money other companies made years ago on a funky device called Vx; but still good enough money. Essentially, the only one who knows more is Dell – but they prolly wont tell. And since Austrians say that stuff that rhymes is good…what do you think?
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It does sound plausible, except for a few loose ends..
1) HTC also make Ipaqs.
2) Dell actually doesn’t really care about it’s brand name on PDAs that much.. Today they are selling Palm, Mio and Asus pdas in various parts of the world. An HTC Axim instead of a Dell Axim wouldn’t be a major problem for them.
3) If Dell wanted to jump into the convergence market then it could.. there are other manufacturers of PDAs apart from HTC. Acer, Asus, Quanta could all be brought in, and using existing designs wouldn’t need to start from scratch.
It’s probably more likely that the numbers weren’t there in the standalone PDA market.
That sector has much higher support costs than the other markets they are in, whic(which is another reason that HTC lets other brands resell their devices..)
Hi Psionandy,
as far as I know, HTC _has made: ipaqs – I am not sure if they still make them. If you know more, please let me know by all means!
As for the numbers not beeing there, Dell was the number 4 of the PDA market in a recent survey, with approx 75k units beeing sold:
http://tamsppc.tamoggemon.com/2007/05/16/news-on-the-handheld-market/
That should IMHO suffice to make a nice fortune…
Best regards and thanks for talking back
Tam Hanna
P.s. Cool site – will add to my plucker list
.
Why then doesn’t Dell just OEM another manufacturer if they still wanted to stay in the pda market.
No, – I think their marketing people were swayed by the plummeting sales of pda format devices versus smartphones (which need a carrier partner).
Hi,
because the new OEM would take time to get started, the machines would have a different “feel” to them in terms of software,…
But you could of course be right too – in the end, its all speculation; and thanks for talking back!
Best regards
Tam Hanna
Tam..
Thanks for that.. Love your blog by the way
Hi Psionandy,
it’s always a pleasure!
Best regards
Tam Hanna