In a move to generate new revenue amid a slumping PC market, Dell is reportedly entering the smartphone market. It could launch its first device in February.
Citing people familiar with the matter, The Wall Street Journal reported Dell has had a group of engineers working on the phones for more than a year and has produced prototypes built on Google’s Android operating system and Microsoft’s Windows Mobile software.
One of the Dell models reportedly mimics Apple’s iPhone, donning a touchscreen device without a traditional keyboard, while the other is a slider-style phone with a full QWERTY keyboard, the Journal said.
The Smartphone Bandwagon
If the rumors are true, Dell would be the latest electronics maker to enter the smartphone market, following in the footsteps of Apple. Dell would face stiff competition from Apple, Research in Motion, and Palm, among others. RIM and Apple hold 70 percent of the U.S. market for smartphones.
Still, with the market for smartphones growing and the market or PCs shrinking, at least temporarily, Dell may indeed be preparing to make its move.
Consider the contrary statistics. According to IDC, 157 million smartphones were sold worldwide last year, up 26.9 percent from 2007. What’s more, IDC predicts smartphone shipments will nearly double to 301 million by 2012.
By contrast, the PC market that Dell dominates is struggling in the face of a global recession. In the fourth quarter, PC shipments slid 0.4 percent from the year-ago period, according to IDC.
With smartphones offering many functions of a PC (e-mail, Web browsing, document viewing, music and video) Dell’s move may be inevitable. Dell wasn’t immediately available to comment.
What are Dell’s Chances?
“Dell has publicly said that they intend to play in devices from two-inch screens to 20-inch screens,” said Avi Greengart, an analyst at Current Analysis. “Dell has long been looking at this…