Move over, Nokia: Dell’s bringing out a smartphone

Dell has a smartphone in the house? Not now, but probably sometime soon if reports about Dell cosying up with Foxconn Group to ‘talk’ about Windows Mobile handhelds are true.

Digitimes broke the news about Dell’s move to resurrect their handheld division. Their Axim range has fallen in popularity, what with the increasing capabilities of smartphones and waning interest in pen-based handhelds.

Sources claim that Dell’s been working on its handheld devices team from the time it hired Ron Garriques, the former Motorola executive vice president in charge of cell phones.

Part of the reason for the hurried moves in solidifying their handheld division probably stems from Acer recently announcing their acquisition of smartphone maker E-Ten Information System.

IDG News Service’s Agam Shah reported an analyst’s take on the developments:

“The development of smartphones, however, seems like a logical step for Dell to expand its presence in the mobile market, said Neil Mawston, director of wireless device strategies at analysis firm Strategy Analytics. ”

Do we really need another smartphone? Despite analysts’ rosy take on Dell’s foray into Windows Mobile phones, they seem to be forgetting something key: Windows Mobile phones haven’t been doing well in comparison with the competition. Apple’s iPhone, Nokia’s Symbian-powered lineup and heck, even RIM’s BlackBerries are outselling all the Windows Mobile phones put together. Selling smartphones may seem lucrative at the moment, but unless Dell can come up with something that could blow the iPhone out of the water, there’ll be little money for them to make but lots to lose.

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• Windows Mobile losing the Smartphone race
• Dell to enter the smartphone market
• Smartphone users not at all loyal, except Apple iPhone users, naturally
• Cell Phones: Does Apple’s iPhone have any business in the smartphone market?
• Nokia bails on AT&T X7 smartphone