We previously announced that Dell and a couple of computer makers were planning to enter the smartphone biz, but this initiative seems impossible now. It’s all because Dell and the mobile carriers couldn’t reach an understanding regarding the control they have over the device.

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The company’s first attempt at launching a smartphone was rejected by carriers, for being too “Dell-like”, according to Tech Trader Daily. Dell even showed two prototypes, one running Android and a Windows Mobile device, but the carrier officials just didn’t dig them.

Small subsidies were also an issue for the wireless players and for Dell, too, since it made it difficult to make a profit. According to the experts, the computer maker needs to get more “differentiation” and they’ll achieve this by going back to the drawing board and making a brand new cellphone.

Also, an acquisition of a software/service provider would be good, in order to separate the handset from its rivals.

[via moconews]

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