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Feb. 1, 2009

Rumors are now flying high that Dell could be the next computer company to enter the mobile smartphone market.

Apparently, engineers at Dell have produced two smartphone prototypes. One with a touch screen similar to Apple’s iPhone and another with a slide-out keypad.

Dell's two prototypes reportedly use operating systems Android and Windows Mobile.

A Dell spokesperson wasn't available for comment late Friday, however.

Speculation about Dell’s smartphone plans heated up when former Motorola mobile phone division head Ron Garriques went to Dell two years ago.

However, Garriques’ non-compete clause expires in March, according to people that are close to him.

If Dell does release a smartphone, it will enter a market that saw sales of $157 million last year, up almost 27 percent from 2 years ago.

But simply building a smartphone may not be enough, according to industry analyst Jeff Kagan.

“Not all smartphones are doing that well. Some are hotter than others. BlackBerry was hot during the last month or two with their two new units being sold by AT&T and Verizon," Kagan said.

"Overall, Palm looks like it will be healthy again with their new handset expected during the next few months. So will Dell devices hit a home run or will they just hit a single? That is the big question,” Kagan commented.

But no details were offered about a potential distribution deal with a wireless carrier. It may take a few weeks to learn if some deals are already being negotiated before Dell's non compete clause expires on Feb. 28.

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Source: WNT.