Windows Phone Thoughts: Dell and the power of bundling

Now that is has been confirmed that Dell is releasing a Pocket PC, we're free to speculate on what it will mean for the marketplace in the latter part of this year. The one thing I haven't seen mentioned yet, and I'm surprised, is the power that Dell has when it comes to bundling. When someone is buying a new computer, Dell almost always has some sort of free upgrade or bundle offer - more RAM, more hard drive space, perhaps a discounted Pocket PC? They have the ability to bundle together solutions unlike any other company I've seen - imagine a "back to school" bundle with a low-end PC and a Pocket PC with a Stowaway keyboard for keeping a student organized. Through sheer market force Dell will be a significant player in increasing Pocket PC market share - if their device is decent that is. I can't see Dell releasing anything of poor quality though.

And speaking of their device, at a $299 price point, you know that it won't be a power user device, right? It seems that every time we talk about a low-end device, some of you chime in with complaints like "32 megs of RAM? How lame is that! I want 128!". Remember: different price points, different target markets, different needs. Dell is not setting out to take on the high end iPAQ 3970 or Toshiba units. If you are a power user, this is not the device for you. They're aiming a wooden stake at the heart of Palm by going for price point that Palm is making money at - I doubt there's much profit to be had at the $150 and below level.

Welcome to the game Dell - here's hoping you hit a home run!