Computer-maker Dell is rethinking its entry into the smartphone market after failing to generate sufficient interest from operators, says a leading industry analyst. “From our conversations with supply chain and industry sources, it appears that it ultimately came down to lack of carrier interest,” Kaufman Bros. analyst Shaw Wu wrote in a research note, reports MarketWatch. He added that the vendor has not abandoned its smartphones but has “gone back to the drawing board” to design a new model, a strategy he says could lead to the Texas-based company making related acquisitions. Wu noted that the original handset has also suffered due to the impending launch of Palm’s much-anticipated Pre device, which he says has generated “interest from carriers as a viable competitor.”

Dell has yet to publically announce its entry into smartphones, despite widespread rumours over the last couple of months. It was widely tipped to unveil its first device at last month’s GSMA Mobile World Congress but no announcement was made. However, rival PC maker Acer did use the event to launch its first smartphones, having now unveiled eight new models. According to earlier reports, Dell is developing smartphones based on both Microsoft’s Windows and Google’s Android platforms.