The Ticker

Smartphone Fight: First Palm, Now Dell May Challenge Apple and RIM

By Kirk Shinkle

Posted: January 30, 2009

The WSJ is reporting Dell has built prototypes using Google's Android operating system and Windows Mobile, with two versions including sliding keyboard and touch screens.

Kaufman Bros. analyst Shaw Wu says in a note that the WSJ story is consistent with his checks and Dell's phone could drop as soon as mid-February. Wu says it makes sense for PC firms to move into phones as high-tech handsets encroach on the notebook space.

Still, it's not going to be an easy road. Apple is the only computer maker to succeed in the smartphone market. Also, it's not clear how Dell would make its phone stand out from customer favorites like the BlackBerry or iPHone. Still, Wu writes, "we believe we are still relatively early in the smart phone adoption cycle and there could be room for a strong No. 3 or perhaps No. 4 player. So Dell has a shot, but the job won't be easy. Wu says, "We believe the company needs to take bigger and bolder steps in order to remain a relevant player." This is certainly a start.

For more on the rise of new competitors in the smartphone space, see "Palm's Pre Is A Huge Bet".

Should be great to see what happens at first

Dell and Palm's entry into the market will only make competition more fierce, which should benefit the consumer.

That said, RIM Nokia and Aplle are well out in front, so it is a huge uphill battle Dell will be entering.

RIM's still growing, flush with cash and a popular new President giving them some free publicity.

Apple is hot, flush with cash and has an improved iPhone soon coming out which will increase its market share.

Mokia is simply the big elephant in the room that still dominates with sheer mass and cost-effectiveness. Hard to knock these three off the podium, even if the Pre is all it is hyped up to be.

Dell and Palm are not nearly in the same good market position, with Palm in the far worse state - time is running short, so they'll hit hard, hit fast. Should be fun to watch. Long live free enterprise!!

Mac

Mac @ Jan 30, 2009 22:57:18 PM

Remember the Dell DJ

Does anyone remember the Dell DJ that was supposed to challenge the Ipod and become the music player of choice?

hs of TX @ Jan 30, 2009 15:19:34 PM

It will be like a new entry into the music download business

Dell is grasping at straws and will likely be compare like M$ entering the MP3 player market.

Apple has the whole package of integration and that is what drives the iPhone, iPod and other Apple products. In this brief time since the iPhones inception there are over 15,000 apps avail and over 300 million apps already downloaded. No typo there 300 million downloaded already! Competition is a good thing but it won't likely come from flailing Dell.

Mr Cap of WA @ Jan 30, 2009 14:47:01 PM

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The Ticker

The Ticker

Kirk Shinkle is a senior editor at U.S. News. He writes daily about ups and downs in equity markets, sectors and stocks. Formerly, he covered business and economics on both coasts for Investor's Business Daily.

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