Dell's exit is understandable considering the bad luck the company has had recently. "It is high time they got out of this business, they have not been doing very well at it," said David Card, an analyst with JupiterResearch. "Nobody is doing well but Apple but Dell was doing particularly unwell. I don't know why Dell wanted to be in this market so they might as well cut their losses and get out."
Recently, Dell announced that profits had fallen by 50%. Just days later, the company announced a recall of 4.1 million laptop batteries, the largest consumer recall in history. While Apple is still leading the MP3 player market with its iPods, the competition continues the fight. SanDisk announced a new 8GB version of the Sansa e200 series, priced the same as the 4GB iPod Nano. Microsoft is also expected to enter the market late this year with its new Zune player.
Source:
ABC