Has Apple Kicked Dell Out of the Tablet Market?

If you can't beat ‘em, run! That's the message Apple AAPL has been sending to tech companies that thought they could compete with the iPad after successfully posing a threat to the iPhone. But unlike the iPhone, which was limited in reach by an exclusive agreement with AT&T T, tablets have never been exclusive to any particular carrier. While the 3G connection may have once been limited to AT&T, the Wi-Fi features have always been open to any wireless hotspot available. But exclusivity was not the only issue. Like it or not, Apple's tablet is still the best available. It may not be much more than a giant iPod Touch, but consumers love the Touch – so why wouldn't they love the iPad? In any event, they didn't love the Streak 7 from Dell DELL, which is why the company has apparently stopped selling this tablet. According to Engadget, Dell has released a statement (which has since been republished on TechCrunch) claiming that while the company “remains committed to the mobility market and continues to sell products here and in other parts of the world,” it still decided to stop selling the Streak 7 in America. “Streak 7 delivered a unique experience for customers who wanted a larger screen-size yet the freedom of staying connected to their personal and professional content while on the-go,” Dell wrote in its statement. “It continues to be available in many markets through retail, distributors and carrier partners such as Optus in Australia. A 10-inch version of the tablet, Streak 10 Pro, is currently offered in China, offering the ultimate digital divide between work and life. The Venue and Venue Pro devices, as well, continue to earn accolades for performance, design and functionality around the world. “We also recently launched the Latitude ST, a 10-inch Windows 7-based touch-screen tablet designed for vertical markets such as education, finance and healthcare in November of this year. We remain committed to expanding our reach beyond PCs with a targeted set of open, standards-based mobility solutions and services designed for commercial and mobile professional customers.” From the sound of that statement, you might think that Dell was set to team up with Microsoft MSFT for a snazzy Windows 8 tablet. While that could certainly be the case, it might be too soon to celebrate. TechCrunch believes that if we don't see a new Dell tablet at CES 2012, the company will ultimately (and, perhaps, quietly) back away from the tablet market altogether. ACTION ITEMS: Bullish: Those who think that Dell will persevere with a new tablet in 2012 should consider the following:

• Unless Dell decides to develop its own OS – an unlikely move considering the challenges that Hewlett-Packard HPQ faced this year – there are only two operating systems Dell could choose for its next tablet.
• The first is obvious: Android. Dell has already used the Google GOOG OS, so there's a good chance Dell would use it again.
• But don't count out the possibility of a Windows 8 tablet, so long as Microsoft can release the new operating system fast enough.

Bearish: If you think Dell is done with the tablet market, consider these alternatives:

• Will Hewlett-Packard release another TouchPad? Probably not. But don't be surprised if it launches a laptop/tablet combo with TouchPad-inspired features.
• If the low-cost Streak 7 had survived, the Amazon AMZN Kindle Fire could have proven to be one of its strongest competitors.
• Barnes & Noble BKS is another strong entity that offers a low-cost tablet.

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