Dell shows off new 7-inch tablet

SAN FRANCISCO Wed Sep 22, 2010 6:29pm EDT

1 of 4. Dell founder and CEO Michael Dell delivers his keynote address at Oracle Open World in San Francisco, California September 22, 2010.

Credit: Reuters/Robert Galbraith

SAN FRANCISCO (Reuters) - Dell Inc Chief Executive Michael Dell showed off a new seven-inch tablet and said the computer maker is on track to bring in more than $60 billion in revenue this year.

Dell appeared on stage at the Oracle OpenWorld conference in San Francisco on Wednesday with the new tablet, which appeared to run on Google's Android software. But he declined to provide any details about the device.

The company released the Streak, a five-inch tablet, last month. Dell said the Streak, which is currently only available through the company's online store, will be available at Best Buy stores next month.

Dell also said the company's revenue has grown about 20 percent over the past two quarters, and "it looks like we'll probably do that again this quarter as well."

Analysts expect Dell to report revenue of $15.8 billion in its fiscal third quarter, which ends in October, according to Thomson Reuters I/B/E/S. That would be 22 percent higher than a year ago.

Wall Street expects Dell to post revenue of $62.4 billion for the current fiscal year, which ends in January.

TABLET PUSH

Dell executives have previously said the company planned to launch tablets in larger screen sizes.

The Streak, which runs on Android and doubles as a smartphone, costs $549.99, or $299.99 with a two-year contract from AT&T.

Dell is the world's No. 2 PC maker, according to industry tracker IDC, but has been expanding its product portfolio, with an emphasis on mobile devices. Apple's iPad has set the standard for tablet computers.

A slew of tablets has hit the market or is expected to in the coming months, including offerings from Samsung, Hewlett-Packard and Toshiba.

BMO Capital Markets expects tablet sales to top 40 million units in 2011 and hurt notebook and netbook sales.

Dell's shares fell 1.8 percent to close at $12.38 on the Nasdaq.

(Reporting by Gabriel Madway; Editing by Derek Caney, Maureen Bavdek and Steve Orlofsky)

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