Dell Inc is entering the smartphone market, with its first device to launch in China later this month, followed by Brazil toward the end of the year.
But the world’s No. 3 personal computer maker gave scant details on the long-rumored new phone, which is called Mini 3 and uses Google Inc’s Android software. The company also declined on Friday to give a timeline for launching smartphones in additional markets.
A source had told Reuters last month that Dell plans to sell a phone in the US on AT&T Inc’s network.
Dell is the latest tech name to bet on a smartphone market dominated by Apple Inc’s iPhone and Research in Motion’s BlackBerry.
Dell said the Mini 3 would be targeted at the consumer market rather than enterprises. China Mobile, the world’s largest mobile carrier by subscribers, and America Movil’s Claro will carry the phone.
Dell’s phone would also boost Google’s fledgling mobile platform, which vies with Apple’s and Microsoft’s platforms.
In a blog post, Dell said it was launching in China and Brazil because of their large subscriber bases and because of existing telecoms partnerships in those countries.
In addition to running on Android software, the Mini 3 is based on the OPhone platform, a lower-cost technology developed by chipmaker Marvell Technology Group Ltd.
Given the headstart enjoyed by its rivals, analysts said, Dell faces serious roadblocks to success.
Hapoalim Securities USA analyst Kevin Hunt said it was tough to see how Dell could have any advantage over established phone makers using Android, including HTC Corp, Motorola Inc and Samsung Electronics.
“They could have modest success. I wouldn’t see it being a big driver,” Hunt said.
He added that Dell was unlikely to make much higher margins in phones than it does in computers.
It was Dell’s first official announcement about the phone, although details have been trickling out for months.
Dell said it had existing agreements with other telecoms providers, including AT&T and Verizon in the US and Vodafone in Europe, which would create more opportunities for the company.
“This is a global strategy,” said Dell spokesman Matt Parretta, who declined to say more.
Additional details on Mini 3 models will be announced when the devices are available in stores.
Worldwide factory shipments of smartphones are expected to rise to 235.6 million units next year, up 27.9 percent from 184.2 million this year, according to iSuppli.
Shares of Round Rock, Texas-based Dell closed US$0.05 lower at US$15.40 on the NASDAQ.
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