Money Matters - Simplified

Dell might use AT&T service with its smartphone

The new android powered smartphone by Dell

New York, October 9 -- Dell is about to introduce its much talked about android-powered smartphone, and might rope AT&T in.

The leading laptop manufacturer would soon be announcing its offer to AT&T, U.S.'s largest provider of local, long distance telephone services.

Neither Dell, nor AT&T, has confirmed any report, or made a comment. They are unveiling the phone months after introducing their smartphone for China Mobile.

In an already crowded market of android-powered products, it has to be seen how Dell manages to carve its niche.

The collision between netbooks and smartphones imminent
According to Jack Gold, principal analyst at J. Gold Associates, the hardware and data network of mobile phones is rapidly improving, making it difficult to distinguish between smartphones and laptops.

Acer, the computer-manufacturing company has already released their smartphone, while the leading mobile phone company Nokia, has introduced its 3G netbook.

"Nokia has to move upstream, and Dell and other computer makers have to move downstream," said Gold. "There's going to be a collision in the middle."

The market for smartphones is crowded, but growing fast. According to IDC, the shipments for smartphones have increased by 27 percent from 2007. It is currently touching the figure of 157 million units, and the number is expected to double by 2012.

The competition
Dell's introductory smartphone might not reach the heights the iPhone has achieved, but it can give the Palm Pre a stiff competition. It will be a better and upgraded version of the Mini3i smartphone that is about to hit the Chinese market soon.

Dell has a very stable brand image and strong presence in the U.S., and their smartphone can prove to be the nemesis of the Pre, or Motorola, or Nokia products. They are also well known for their direct-to-customer approach, which works well for the middle tier smartphone users.

The Blackberry will not offer direct competition to Dell as of now. This is because the android-powered Dell smartphone is not apt for business use yet, and Blackberry has a firm hold on the corporate sector users.

It is not going to be a cake walk for Dell. Companies like Motorola and Nokia have a reasonably firm hold on the U.S. Market, and are churning out android-powered smartphones with complete customization options. Dell has not yet been able to produce such tailor made products for its users.