Dell has been threatening to enter the smartphone market for some time, but the company has now been forced to take its plans back to the drawing board after failing to impress mobile operators. As it turns out, despite showing prototypes running either Windows Mobile or Google’s Android operating system, the devices were rejected on the basis of “lack of differentiation” from current and upcoming smartphones.

Dell doesn't seem ready to give up just yet, though. The computer maker is reportedly determined to enter the mobile phone space and will continue to work on designing and re-designing its devices or even consider an acquisition to spur such efforts along. But even with a redesign of their smartphone, Dell is facing an uphill battle. Apple’s iPhone has already garnered a loyal following, the BlackBerry is well-established among business users and a number of consumers are eagerly waiting for the launch of the Palm Pre. Meanwhile, other PC makers such as Acer and Lenovo are also looking to grab a greater share of the smartphone market.