Dell creates smartphone division

Dell said it plans to create a division focused on communications and mobile devices as the computer maker broadens its reach into smartphones.

The move caps months of announcements around Dell's moves in the smartphone market. Last month, Dell introduced the Dell Mini 3 that is launching with China Mobile, the world's largest mobile operator, and Brazilian carrier Claro. In October, Dell CEO Michael Dell confirmed that the company would be releasing smartphones next year in the United States based on Google's Android platform.

Dell is one of several computer makers, such as Acer, to expand into smartphones. However, it remains to be seen whether these players can translate their success in the PC market to the smartphone market.

The news is "further confirmation that leading PC manufacturers cannot resist mobile space despite high distribution and differentiation barriers and low probability of success," CCS Insight analyst John Jackson wrote in a research note. "We have no reason to believe Dell will be capable of significant differentiation or disproportionate value capture at this point regardless of platform choice."

For more:
- see this WSJ article (sub. req.)
- see this Bloomberg article

Related Articles:
Dell finally enters smartphone market
HP re-enters US smartphone market
RIM: Smartphones will trump netbooks