Rumours of Dell’s new SmartPhone have been surfacing for months but now it is official, Dell’s first SmartPhone device is about to be launched.
Traditionally a computer company selling desktops, laptops and netbooks, it isn’t such a leap in the dark for Dell to move into the SmartPhone market as these days SmartPhones operate more like mini computers.
Consequently, phone companies too, Nokia as an example, are starting to produce mini computers in the form of Netbooks, it’s sort of a natural progression as the boundaries between these devices start to merge.
What is surprising for some though is that Dell’s first mobile phone will be launched not in the USA or in Europe but in China later this month and in Brazil next month.
So why launch it in these two countries first? According to a Dell blog post, it’s because these two countries have a very large subscriber base and Dell already has existing partnerships in these countries.
It’s true, China Mobile who will be carrying the phone in China has a huge subscriber base that amounts to nearly double the market in the whole of the US.
In Brazil too, America Movil, the parent company of the mobile phone carrier that Dell will use in Brazil, has more subscribers than both Verizon and AT & T put together.
The problem is of course that in the US and in Europe, competition will be tough, and as it is Dells first tentative steps into the SmartPhone market they probably want to be more sure of a solid start.
“I think it’s going to be difficult for anybody without a big wealthy software and app base of support to get customers interested, at least in the U.S. and Europe,” said Avi Cohen, managing partner of Avian Securities.
Dell already has partnerships with AT & T and Verizon in the US and with Vodafone in Europe which will no doubt give them more opportunities in the future.
“This is a global strategy” said Dell spokesman Matt Parretta.
Dell’s Mini 3 as the new SmartPhone is called, uses Android, Google’s operating system software and this too may be part of the reason they chose China and Brazil first.
According to Hapoalim Securities USA analyst Kevin Hunt, Dell will find it difficult to compete with established phone companies already using Android such as the likes of Motorola, HTC and Samsung.
“They could have modest success. I wouldn’t see it being a big driver” Hunt said.
We don’t know yet when the Mini 3 will be available in other countries but will keep you posted.
