Dell is rumored to be working on a smartphone that will run Google’s Android operating system. According
to a report, it’s also expected to be AT&T’s first Android device,
though whether it would be exclusive to the carrier is unclear.
It would be Dell’s first smartphone, though the path from computer
maker to phone maker is a well-established one, already tread by Acer,
Apple and Hewlett-Packard — though HP the least successfully.
Steve Baker, an analyst with NPD Group, points to these computer makers
that have already made the transition as a sign of where the industry
is headed in the coming months.
“The cell phone is more and more becoming a tool for business people
and a key tool people are using to manage their lives and surf the Web
and everything else,” he told eWEEK. “It’s logical for PC OEMs to go
into smartphones.”
Dell was said to be working on a smartphone in March, that according to Kaufman Brothers analyst Shaw Wu was rejected by U.S. carriers for not being distinct enough.
In August, it was reported that Dell had debuted the Mini 3i, an
Android-running smartphone for distribution in China, at a technology
show in Beijing. During Dell’s most recent quarterly revenue
announcement, however, Brian Gladden, Dell’s chief financial officer
dismissed the China Mobile device as just a “prototype” Dell had
presented.
When pressed for details, Gladden responded:
"We showed a proof of concept prototype at the event with our
partners China Mobile, who obviously we’ve had a relationship with.
We’ve sold netbooks that are broadband-enabled. And we really
don’t have any further details to share at this time. We will continue
to explore opportunities across multiple screen sizes, we’ve said that.
From our standpoint, it’s a natural extension of what we do. ... From
our standpoint, we're spending an awful lot more energy on the
enterprise side of our business than launching phones."
It seems Dell may now be ready to put more energy into phones, and
that Android could help offer some of that previously missing
distinctiveness.
“They have an established brand, and if they make a good product and
target it properly, there’s no reason they can’t do well,” said Baker.
Dell's intentions, however, are so far unclear. “Are they planning to
be more consumer or more enterprise focused? How are they going to mesh
it with their other abilities?" Baker added. "[To be successful,] they
have to find what makes their products unique in this space, and how
they’re going to take advantage of what it is they bring to the market.”
Ken Hyers, an analyst with Technology Business Research, thinks a Dell
smartphone will for sure target consumers. “They’re signaling that very
clearly by going with Android instead of Microsoft. And I think that’s
a smart move. [On their first attempt,] they don’t want to compete with
RIM, which is the gold standard for the enterprise,” he told eWEEK.
But that’s not the only reason for choosing Android, he explained. The
open-source Android has no licensing fees, which is appealing, and the
roster of applications for the OS is quickly growing in the Android
Market.
“It’s also the newest smartphone OS for mobile. Which means that it’s
able to take advantage of a lot of new features, like multitouch, and
to get the most out of features like the accelerometer. Having all of
these in an OS that’s also easy to develop for all makes sense for
Dell,” said Hyers.
Baker adds that whether or Dell succeeds is a matter of managing
expectations. “It’s not like they’re out to challenge Nokia,” he
said.
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