Dell is Dull: Smartphone Canceled for Lack of Interest

— -- Remember the Dell smartphone? Apparently neither do cellular carriers. According to Kaufman Bros. analyst Shaw Wu, the Dell smartphone profoundly failed to wow carriers and was dumped.

Dell faced stiff competition from RIM's Blackberry, Apple's iPhone, and the upcoming Palm Pre, and based on Wu's report, couldn't handle the pressure of making a sexy, functional device that would entice interest. "From our conversations with supply chain and industry sources, it appears that it ultimately came down to lack of carrier interest," Wu wrote.

Dell built prototypes that ran both Windows Mobile and Google Android but couldn't physically differentiate its handhelds from competitors. Sexy tech sells, and judging from Dell's computer line-up, which is mostly full of cheap-looking plastic devices -- Adamo notwithstanding -- the company failed to open any eyes. And since Dell did not craft its own OS, it seems as though it's almost had no chance.

Nevertheless, Dell has "gone back to the drawing board" and will rejoin the race with a device that will "likely involve vertical integration of some sort including software and/or services," Wu writes.

There is also buzz that Dell might be looking to buy Palm, which would definitely give Dell a heads-up in the smartphone biz.