Report: Dell working on Android gadget

Dell is developing a pocket-size Internet device using Google's Android operating system that could take on Apple's iPod Touch, according to a report from the Wall Street Journal on Monday.

Two people who have seen early prototypes of the device told the newspaper it looks like Apple's iPod Touch but slightly larger. And like the iPod Touch, the device isn't expected to include a cellular phone. The device is considered part of a new category of gadgets called mobile Internet devices, or MIDs, which are designed to fit into the market between a mobile phone and a laptop or Netbook computer.

The device could go on sale as early as the second half of 2009, according to the Wall Street Journal's sources.

Dell supposedly started working on the new device about a year ago as a way to compete against Apple's iPod business. The Journal also cited an unnamed source who said that Dell has considered selling the new Internet device through a cell phone carrier. Dell and other computer makers such as Hewlett-Packard already sell their Netbooks through cell phone operators.

Dell has long been rumored to be making a smartphone. And the company has also been rumored to be testing the Android software for its smartphone and possible for its Netbooks. With these developments in the works, it probably wouldn't take much to also develop a portable Internet device using the same operating system without the phone. That's what Apple did with the iPod Touch.

[aerosky1229]

I like the Dell's laptop. But I believe the Dell is spelling a disaster with this decision. It failed in MP3 and other consumer electronic business anything besides the computer business. So, how can it possibly dream about designing a descent cell phone that can compete with the mighty iPhone?

[RompStar_420]

ha! This is great, Vendors who historically only used Microsoft are now using other things, finally, let the games begin, and competition start!!!

The first G1 phone from Google blew away all effort from MS from when they first started, now that genious.

[gefitz]

If you have a device, that isn't a cell phone, that has wireless internet access....with a decent speaker and mike...isn't that enough? I'd just Skype it.

Let's face it...generally speaking the "phone" part of "smartphone" generally sucks. So, dump it. Sell cellular data access on that device. I'd hit that.

[onefish2]

Great... that is what we need another ugly as sin Dell gizmo... no thanks, I will stick with my iPod touch.

[forever4now]

All MIDs should optionally support cell phone calls, SMS/MMS, LBS, etc. (i.e. basic smartphone functionality). If Dell's MID is running Android, it would only need the corresponding hardware to enable this functionality. This would make Dell's MID even more attractive to mobile operators, since the operators would be able to generate revenue from phone calls, SMS/MMS, etc., in addition to basic data contracts.

[copenhaus]

Even though Dell didn't fare well with MP3 players and other consumer-based products, I applaud them for willing to put in R&D and try and try again.

Who knows, this might be a hit and will start innovations on Android-based products. This will make consumers (as well as Good, of course.)

Innovations and competitions, the American way?!?!

[Captain Bebops]

Android is already like the Palm was. A lot of apps for it and there will be plenty more. Unlike like the elitist platforms which often take forever if at all to get an app approved there is no need for that with Android.

[ckh1272]

@Captain Bebops-Subtlety suits you, not. Oh, with more than 50,000 apps, it MUST be real hard to get approval <sarcasm>

[artistjoh]

There was a time when cost alone was enough to be successful. After all in the early days of computers the innovators like Apple and IBM charged a lot for their computers and there was plenty of room for Dell to become successful simply with a business model based on cutting costs.

Dell has learned the hard way that in today's market to be a cost cutter means margins so small the company struggles to make a profit. The companies that tend to innovate and experiment with new platforms like Apple with its iPhone/iPod lines tends to do well because their business model relies on the high margins and higher pricing of emerging markets.

To come along after prices start to fall with a me-too product and without the App Store juggernaut in your favor (and in fact working against you) makes it look like an uphill battle for Dell. There are plenty of great products competing against the iPhone/iPod Touch these days but none seem to make much headway against the firmly established Apple products. With a lack of any history as an innovator with devices Dell is most likely to fail with this one.

[renagade89]

I believe the lack on wifi, and especially free wifi, on most mp3/4 players are what makes the Touch a hard product to beat. Along with the app store, no other mp3 player compares, and I am a huge Creative fan. But i think I will be switching to the touch in the next few months. However, I am intrigued by this article, because maybe Dell has realized you cannot compete with the touch unless your device has wifi capabilities.

[Chapmaniac]

Android is to smart phones as Windows 7 is to computers. Both will sell quite well.
More difficult to predict will be if Android can move Windows out of even the smallest PC desktop market share. You can't stay number 1 forever.

[DarkHawke]

Uh-huh, and where's your stats on that? I hear everyone raving about what Win 7 can do. Android? Not so much.

[jscott418]

I think these small form factor smart phones or internet appliances are way over played already.
Adding another player to the mix is not going to help anyone. I have a iPod Touch and except for the newness of the technology. I really can't say it grows on me. After a few weeks of playing with it, the thing becomes too small and too constrictive to be really useful. I found myself asking why am I surfing the internet on this little thing when I could be using a perfectly good laptop?

[renagade89]

It seems to me that you are looking at the Touch as a mobile computer first and mp3 player second. I was thinking of getting a touch, seeing it as an mp3 player that had the convenience of the ability to get on the internet if I was on the road or something. What do you think?

[jaxstephens]

I'm going to guess that Dell will fail at this. As usual, it will be a cheap-feeling, ugly device. Dell just has no style at all. At least they aren't coming up with their own (awful) interface and will instead be able to leverage Google Android.

[adam_hartung]

Dell's new product is short on what the market looks for, and long on trying to leverage Dell's distribution. Why would this product be desirable, given the capabilities and pricing of an iPhone, Pre or netbook? Dell must change its operating model to regain profits, and that won't happen by trying to push uninteresting new products on customers. Read more at http://www.ThePhoenixPrinciple.com