On heels of Motorola's Droid, Dell enters smartphone market

Following on the heels of the much-hyped Motorola Droid, Dell announced on Friday its intention to enter the smartphone market in China and Brazil.

If Dell's recent $3.9 billion acquisition of Perot Systems represents the Round Rock Texas company's largest foray into enterprise consultative IT, then its decision to jump into the smartphone market - albeit in Brazil and China - likely represents its biggest move into consumer markets. Though it could be said that the smartphone is the domain of the business traveler and the corporate classes, the devices have really taken off among the gear heads of the gadget-loving masses. In fact, smartphone sales were up 13 percent in the third quarter, despite sluggishness elsewhere in the struggling economy. Device manufacturers are also quite bullish about a healthy Q4, as the smartphone continues to make its way onto holiday gift lists. But Dell's decision to move into the smartphone space also represents a step into a crowded space. Apple, Nokia, Motorola, and Research in Motion have manufacturing experience and solid relationships with the major telecommunications carriers - and while Dell is launching in the countries where they have the strongest telecom relationships, the Dell Mini 3 smartphone will also need a suite of slick applications in order to attract customers in the United States and Europe. Motorola's Droid has received heavy co-op promotion from Verizon Wireless - and like Motorola's Droid, the Mini 3 will utilize the Google Android operating system. In this regard, Dell may benefit from the Verizon/Motorola advertising splash - should the Mini 3 make an appearance in the U.S. anytime soon. “Our entry into the smart phone category is a logical extension of Dell’s consumer product evolution over the past two years,” Ron Garriques, President, Dell Global Consumer Group said in a press release. “We are developing smaller and smarter mobile products that enable our customers to take their internet experience out of the home and do the things they want to do whenever and wherever they want."