Dell enters Chinese smartphone market

ROUND ROCK, Texas, Nov. 14 (UPI) -- U.S. computer maker Dell says it will enter the high-end "smartphone" market with the Mini 3, to be marketed this month in China.

Officials with the Round Rock, Texas, company said Friday the cell phone will be sold by China Mobile Ltd. and will run on a customized Android operating system made by Google Inc., The Wall Street Journal reported.

Dell had indicated earlier it was working on plans with China Mobile, the newspaper said. The release of the cell phone marks a new phase of turnaround efforts for Dell, which has fallen from the United States' No. 1 personal computer maker three years ago to its current No. 3 position.

The Journal said the return of Dell's founder, Michael Dell, as chief executive in early 2007 has coincided with new strategies, such as using retail stores to pitch PCs rather than strictly relying only on direct sales.

Rob Cihra, an analyst with Caris & Co., told the newspaper he has doubts about Dell's strategy, saying it will be tough for it to stand out in a crowded "smartphone" market using the Android operating system, which lacks the proprietary bells and whistles offered by Apple on its iPhones.