Dell May Take on Apple in the Smartphone Business in 2009

While almost every sector in every business was down in the dismal year of 2008 there is one area that saw considerable growth. According to IDC, 157 million smartphones were sold last year worldwide. That figure is a 26.9 percent increase from the year 2007. What's more, IDC expects that number to grow to an astronomical 301 million by the year 2012 (source: tech.yahoo.com). Armed with that knowledge it is easy to see why Dell may be set to take on Apple again only this time not in the computer industry but in the smartphone industry. Ring the bell because round two of Dell vs. Apple is about to begin.

When you think about it the move makes absolute sense for Dell to be considering such big growth potential for smartphones. Besides, smartphones are becoming increasingly like computers with each new model that comes out. There are feature such as e-mailing, web-surfing, music playing and movie watching just to name a few. Conceivably the day may come when the smartphone all but replaces the traditional PC.

As for computers themselves? Last year sales of computers were down worldwide by a slight margin. Still with the economy going the way it is going, Dell needs to ensure its survival. Either they conform to what the consumers want (the smartphones) or they die like a lot of other big names will in this horrible recession. How prepared is Dell?

According to the Wall Street Journal, Dell has been working on its smartphones for over a year already and have two prototype models that could be ready for launch as soon as late February of 2008. One model is like the iPhone from Apple in way of functionality by using the touchscreen instead of the traditional keyboard. The other is supposedly a slider style smartphone with a full QWERTY keyboard. Both phones are said to use Google's Android operating system and Microsoft's Windows Mobile software (source: tech.yahoo.com).

But if Dell hopes to come in with its guns blazing they may want to think again. Apple and Research in Motion (RIM) currently hold a 70 percent market share in smartphone sales in the United States and other companies like Palm are beginning to make strides (source; tech.yahoo.com). Dell may also face big hurdles when it comes to linking up with carriers.

Dell realizes though that it no longer has the luxury of depending on PC sales to carry the company. They have taken on Apple in the past with the computer wars and they now get ready for round two; the smartphone wars. Will dell succeed? Time will tell, but the gloves are off and the battle is ready to ensue. That is of course if Dell actually pulls the trigger.