A high-level Dell executive says his company’s entire mobile focus is going to be on tablets running Microsoft Windows. It isn’t going to release any more with Google’s Android OS.
Jeff Clarke, the head of Dell’s consumer business, said “It’s a content play with Android. Amazon is selling books and Google is making it up with search. So far, we couldn’t find a way to build a business on Android.”.
Clarke is hardly the first to make this observation. Any number of analysts have pointed out that Amazon, Google, and Barnes & Noble are selling their Android-based tablets with little or no profit margins because they make their money by selling users of these devices music, eBooks, apps, movies, and much more from the companies’ stores.
Any company like Dell that lacks a content store, and therefore needs to make a profit on hardware, is going to have a hard time competing in the Android tablet market.