Is a Dell handheld device in the works?

Posted Dec 11th 2007 2:36PM by Brian White
Filed under: Rumors, Products and Services, Dell (DELL)

Dell (NASDAQ: DELL) is coming off an accounting scandal, it is re-building its market share in the PC business step by step, it is having to redo its marketing from the ground up and it's turning tail on direct sales and entering retail in a flurry. What is left for Dell to do as it marches toward consistent and profitable growth? Enter the handheld device field, according to some.

Dell's entrance into the handheld gadget field would be crazy in some ways and image-building in others. It exited the MP3 player and PDA markets recently, as it was just not selling enough to justify producing them. In its defense, the PDA industry transitioned to the smartphone industry, and Dell was not ready with a product. But even if the computer maker released a smartphone, would anyone buy it? Remember that Hewlett-Packard (NYSE: HPQ) already has a decent presence here, along with newer entrant HTC and of course, the Apple (NASDAQ: AAPL) iPhone.

Would Dell find success with some kind of handheld device? It already bought Zing this summer, which offers wireless music and media downloading. But is the market ready for yet another entry into the field of Apple's iPod and iTunes music store and Microsoft (NASDAQ: MSFT) Zune store and player? That would be wasted effort. What about a smartphone, like the iPhone or the Palm (NASDAQ: PALM) Treo? It's pretty darn crowded there, too.

Dell would have to offer something that's not currently available, not a "me too" product just to get an image with consumers. Been there, done that. If it wants to be more than just a PC company, time to do some market disruption and take a larger risk. Now's a good a time as any.

Tags: DELL, Dell Axim, Dell handheld, DellAxim, DellHandheld