A Dell Smartphone Would Face Big Hurdles

Dell (DELL) CEO Michael Dell has done little to dispel rumors that his company is working on a mobile computing device. In fact, he all but confirmed them while traveling in Japan on March 24 when he said: “It is true that we are exploring smaller-screen devices.” What form those devices will take remains a matter of heated debate. Talk is that Dell plans a smartphone that would compete with Research In Motion’s (RIMM) BlackBerry, Apple’s (AAPL) iPhone, and the various devices running software from Microsoft (MSFT), Nokia (NOK), or the Google-backed (GOOG) Open Handset Alliance. Prototypes of a Dell-made smartphone are being circulated in the wild and, according to Kaufman Bros. analyst Shaw Wu, got a cool reception from mobile-phone carriers including AT&T (T) and Sprint Nextel (S).

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