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January 29, 2009 6:27 PM PST

More details on Dell's supposed smartphone

by Leslie Katz
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We've been hearing rumors of a Dell smartphone for a while now, but The Wall Street Journal gave more shape to the speculation with a report Thursday that the PC maker "has had a group of engineers working on the phones for more than a year from an office in the Chicago area."

Michael Dell

Michael Dell has dropped smartphone hints in the past.

(Credit: Dell)

The paper quoted sources close to the plans as saying the team produced prototypes built on Google's Android operating system and Microsoft Windows Mobile (which would you prefer?). One model has a touch screen but no physical keyboard, a la Apple's iPhone, the WSJ says, while another is a slider-style device with a keypad that slides out from under the screen.

Reiterating Dell's earlier tight-lipped stance on the matter, a Dell representative said the company hasn't disclosed any such plans, adding "we haven't committed to anything."

But the WSJ says the smartphone development team spent much of last year meeting with suppliers of phone components, phone software companies, and Asian phone manufacturers.

Amid a , smartphones are a logical horizon for PC makers to eye.

While not all smartphones are faring equally well, the sector overall is still healthy. Growth was at about 50 percent until recently. It is still at a 10 percent to 15 percent growth level at the moment--and that marks a healthy market, according to Jeff Kagan, a wireless and telecommunications industry analyst.

"So will Dell devices hit a home, run or will they just hit a single? That is the big question," he said. "We won't know until we know more about it. So much depends on the device."

Dell's been out of the handheld business for over a year and a half, but there have been signs it's been testing the waters, such as its acquisition of streaming-audio software maker Zing Systems in August.

Leslie Katz, senior editor of CNET's Crave, covers gadgets, games, and most other digital distractions. As a co-host of the CNET News Daily Podcast, she sometimes tries to channel Terry Gross. E-mail Leslie.
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by Mr. Dee January 29, 2009 6:44 PM PST
This sounds like a terrible decision. Its like Microsoft entering the MP3 market when Apple has pretty much dominated it. How will Dell compete against industry stalwarts such as Nokia, RIM, Apple and PALM which recently refocused with the Pre? I haven't even heard anything new about the AXIM.
Reply to this comment
by Perry_Clease January 29, 2009 7:16 PM PST
We haven't seen it yet, it could be better than anything out there.
by JuggerNaut January 29, 2009 7:24 PM PST
Mr. Dee

Uh, the AXIM got AXed a couple of years ago (I believe?).
by gerrrg January 29, 2009 8:30 PM PST
If it ran on Android, it would be very exciting. Anything else and it's just another cell phone maker. Somehow, I suspect it'll run on Windows Mobile.
by forever4now January 30, 2009 3:51 AM PST
I agree with "gerrrg" that an Android device would be exciting. The Android market is wide open right now and the first vendor that can produce an attractive Android device is likely to discover a gold mine. The added benefit is that they could also use any experience gained with Android, to offer it on netbooks in the future, if it choose to do so.
by DBdweeb January 30, 2009 8:02 AM PST
Your comparison to Microsoft and the MP3 scene is wrong-headed. Apple was far from being the first in the MP3 market but came in later to dominate with a superior product and/or better marketing. It also doesn't apply in that Microsoft is not primarily a hardware company but Dell is.

Finally, and most importantly, while an MP3 is far from being like a computer, a PDA/Phone is pretty much a fully capable computer. It has far more computation capability than the first PC which now serves as a door stop. This is just an extension of a market that Dell is already in. The same O/S (Linux derivative) can be used to power PDAs, netbooks, laptops, desktops, and servers. Isn't this the Holy Grail of computing?

Haven't you seen those iPhone commercials talking about all its computing abilities which end, "And oh yeah, it's also a phone?"
by SkateNY January 31, 2009 5:18 AM PST
That's a great question. The three remaining Dell investers need to be concerned.
by CDubber January 29, 2009 7:10 PM PST
Wow, just what the smartphone market needs - an entry from the high-style consumer electronics geniuses at Dell...

/sarcasm
Reply to this comment
by ducttape36 January 30, 2009 12:05 PM PST
agreed. dell isnt exactly inovative when it comes to consumer electronics. what was their mp3 player called again? the beat? that thing was ugly. if any pc maker was going to try and make a smart phone i would think it'd be hp. they seem to be better at that sort of thing. still i guess we cant really pass judgement until we see the thing. but i have no high expectations.
by SkateNY January 31, 2009 5:32 AM PST
I understand that you're being sarcastic. The thing is, Dell has never pole vaulted over others' technology in any significant way. It's just not in their DNA. They're good copycats, and they have a great deal of leverage to get components at a bargain price, but no one ever accused them of leading the market in design or innovation. That's not going to change just because they need to stop bleeding cash.

I do sympathize with their shareholders. Things are not going to get better for them for a very long time, if ever.

If I were Michael Dell, I'd sell the company to HP, buy an island in the South Pacific, and never be heard from again.
by pkokkinis January 29, 2009 7:39 PM PST
Smart move in my opinion. Dell has a large presense in businesses and this will be just a natural extension, and my guess is that their reving up a Windows Mobile 6.5 product. This product would not compete with the consumer orientated iPhone, but head to head with Rim.
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by SkateNY January 31, 2009 5:41 AM PST
Yeah. Smart move. A company bleeding money, making regular cutbacks, shutting down facilities worldwide, laying of employees in droves, and killing its shareholders that has already failed more than once in the MP3/Smartphone market should compete "head to head with Rim."

Jesus. What planet does this stuff come from?
by Romriech January 29, 2009 7:40 PM PST
Off the shelf software, borrowed hardware design, and little to no actual direction in the conceptualization. Yep, sounds like a Dell.

Will it come in any color other than beige?
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by bbelenski January 29, 2009 8:09 PM PST
i am a huge dell fan... color me intrigued..
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by Get_a_life_Leo January 29, 2009 8:24 PM PST
Have they forgotten the disaster that was the vaunted Dell DJ? Dell had/has a great business model for just in time, customized assembly. How does that fit with consumer electronics such as cell phones? They look at Apple's fat profits and want a piece but its like MacDonalds serving carrot juice. And Dell still needs to hire someone with design sense. Seriously. Good mutton computers dressed up as lamb.
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by Alexander_Goldman January 29, 2009 9:03 PM PST
I would have to agree with the majority of comments above - haven't seen very much innovation out of Dell these days.. Until their product quality improves and just as important in my opinion, their 'Customer Service,' I will never look at another Dell product ever again.

I have only ever owned 1 Dell product - a Dell Latitude D600 and the paint is peeling off the lid. This is not acceptable and clearly a defefect after 4 light years of use. Willing to pay to get it fixed but they don't want to take my money.. I have experienced 'Dell Hell' first hand and not going down this road again.
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by firethesky January 29, 2009 9:35 PM PST
Does that mean more competition in mobile phone market?
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by seven7dust January 30, 2009 12:32 AM PST
the worst is coming true !
the cell phone market is already so congested
we don't need innovation less companies like Dell/Acer
Reply to this comment
by dennisl59 January 30, 2009 6:17 AM PST
This, to me, is an obvious Vanity Project by Michael Dell.

It makes no sense, on any level, in this economy already awash with existing Products from companies that already have dominate market share.

(And everyone here knows what they are and have their favorites, no argument here)

I predict Failure.

In my opinion.
Reply to this comment
by Eludium-Q36 January 30, 2009 7:25 AM PST
It's ashame that part of this story doesn't read "or licensed from Apple". Microsoft licenses and Apple doesn't. That will ultimately determine the global winner in anything, because in the end Apple is stingy and selfish, to Heell with them.
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by gregorytga January 30, 2009 10:58 AM PST
A large part of Apple's success in recent years, has been the ability control the user experience on both the software and hardware front. That's what makes Apple, Apple. There was a time when Gilbert Amelio opened up the Mac platform to "clones" it did nothing to further Apple's platform other than to cannibalize Apple's own sales. At this point in time, Apple's own closed approach has benefited it far more than it has hurt it as now Apple is the golden child of the computing industry and quite possibly the tech industry.

You have to ask "What could Dell bring to Apple by producing a phone?" If the answer has to do with a price point, you've completely misunderstood Apple. Apple doesn't care to produce entry level phones, as stated, it only cares about producing the world's best phone. Its not in Dell's corporate DNA to beat Apple at its own game. I'm not saying it isn't feasible but its just not likely.

Dell will likely produce a phone that's a less expensive yet acceptable and perfectly usable and licensed OS from MS or Google
by seven7dust January 30, 2009 11:23 PM PST
Apple isn't looking for global domination !
infact they goal for the whole of 2008 was 1% market-share
they believe in giving the best user experience
which can only be done with a closed system

if Apple really want's high marketshare they'd sell a
basic IPOD phone for a low price, but they don't
by SkateNY January 31, 2009 5:52 AM PST
In the end, Apple is winning on their own terms. They don't nee you, Microsoft, or anyone else to tell them how to get to zero debt and billions of dollars of cash.

Thanks for sharing.
by MPB January 31, 2009 11:34 PM PST
I really don't think that Apples main goal is to be a 'global leader' their main goal is to just provide the most pleasant user experience, and the only way they can achieve this is with a close system.
by macrhino January 31, 2009 5:23 AM PST
I am thrilled that Dell will enter the smartphone market. I predict that the DellPhone will share the success of the Jukebox and the Axim. If Dell can release it by June 09, they will sell hundreds by the end of the year, if only to Dell employees. By the end of 2010 there could be up to 2 or 3 thousand DellPhones sitting in closets and drawers all over the US.

Eludium-Q36 You have obviously never used an Apple product. I hope the Apple ignores the traditional market share "someone will win" idiocy and continues to focus on creating the finest user experience out there. Your computer interaction today, even under Windoze or Linux/Unix could be labeled "interface by Apple" ( OK Windoze would be "interfase by Applle") but you get the picture.
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by SkateNY January 31, 2009 5:53 AM PST
Very funny!
by SkateNY January 31, 2009 5:26 AM PST
Problem is with the Android, the same problem with all open source ventures. A great deal of potential, a lot of people get excited, but nothing tangible ever happens for them. Even with the backing companies such as IBM. Consumers, not only don't they know what "open source" alternatives are, they truly don't care.

If you don't need to pay for a product that's part of your daily routine, you're not going to value it. If someone offered me free gasoline for life, I'd jump on it in a New York minute. But only because I've been paying for that product for my entire adult life. Offer me a new product that is not considered mainstream at no cost, what is incentive to dive into a potentially tough learning curve that few, if any, of my peers can help with when things go wrong?

I think Linux is a very good thing and that open source software represents one among the best things in a free market society. But, sometimes, you need sleep with the enemy in order to succeed. The business model sucks, and their user base is never going to grow in any significant way until they decide to compete. It's neuroscience; it's both common sense and what we know from history.
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by OldComputerGuy January 31, 2009 9:28 AM PST
It would be interesting if Dellcould be the first company to build hardware that could run WinMO, Android & Palm Pre. Think about all of those OSes on a hefty netbook - why would execs/road warriors that primarily use email/calendar/tasks/web need a laptop running Winodows? Think of how many headaches would simply disappear for enterprise IT/

Bussiness & consumer IT isn't diverging - it is converging on the smartphone - Palm & Apple don't have the capacity to mfg enough devices - it will ultimately be someone like Dell/HP/Lenovo/Asus that sells devices used by enterprise employees - who are called consumers.
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by SeanDuffy January 31, 2009 10:37 PM PST
I think people here are missing what dell does. They revolutionized the computer industry by creating made to order hardware. How would you like to be able to choose the amount of RAM, SSM, screen resolution, connection types, camera, even operating system, for your phone? Just like you did for the Dell laptop your reading this post on.

PS this could be the real zzzphone
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by CLHatch February 17, 2009 1:25 PM PST
Really? If that's what they do, then why did they have HTC make their PDAs, and Creative Labs make their MP3 players?

What they do is have other companies make their products, and then re-brand them.
by miraclestone February 2, 2009 7:00 PM PST
Dell smartphone. VMware virtualizing mobile devices.....makes you go hummmmm.
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