UPDATE 3-Dell to sell smartphone, starting in China, Brazil

Fri Nov 13, 2009 4:19pm EST
 
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* Mini 3 smartphone to run Google's Android software

* China Mobile and America Movil's Claro are carriers

* Phone aimed for consumers, not corporate clients

* Analysts see high barriers to success (Adds comments from spokesman and analyst, previous NEW YORK)

By Gabriel Madway

SAN FRANCISCO, Nov 13 (Reuters) - Dell Inc (DELL.O) is entering the smartphone market, with its first device to launch in China in late November, 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 (GOOG.O) Android software. The company also declined on Friday to give a timeline for launching smartphones in additional markets.

A source had told Reuters in October that Dell plans to sell a phone in the United States on AT&T Inc's (T.N) network.

Dell is the latest tech name to bet on a smartphone market dominated by Apple Inc's (AAPL.O) iPhone and Research in Motion's (RIM.TO) BlackBerry.

Dell said the Mini 3 will be targeted at the consumer market rather than enterprises. China Mobile (0941.HK), the world's largest mobile carrier by subscribers, and America Movil's (AMXL.MX) Claro will carry the phone.

Dell's phone would also boost Google's fledgling mobile platform, which vies with Apple's and Microsoft's (MSFT.O) platforms.

FOREIGN LAUNCH

In a blog post, Dell said it was launching in China and Brazil because of their large subscriber bases and because of existing telecom partnerships in those countries.

Avi Cohen, managing partner of Avian Securities, said Dell likely opted for a launch in two foreign markets following a lukewarm response from U.S. carriers. He said the challenge for the company will be to differentiate itself.

"I think it's going to be difficult for anybody without a big wealthy software and app base of support to get customers interested, at least in the U.S. and Europe," Cohen said.

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 (MRVL.O).  Continued...