Analyst Calls a Dell Smartphone ''Inevitable''

At least once a year, a new round of rumors crop up that Dell is going to release its first smartphone. A new research note from an industry analyst has set this off again.

"We believe it is likely inevitable that Dell enter the cellphone space given the cannibalization of PCs by smartphones and highly functional mobile devices," wrote Shaw Wu from Kaufman Bros.

Wu went on to say that this company has been talking to mobile device manufacturers for a couple of years now, which could be the source of the re-occurring rumors that this company is close to releasing something.

Dell hasn't closed the door on the idea. "We are certainly looking at the whole smartphone category, but I wouldn’t expect anything anytime soon," Michael Dell said in an interview last summer. In this same interview, the founder of this PC giant also raised the possibility that any upcoming mobile device might be a MID, rather than a smartphone.

In his research note, Wu didn't try to predict exactly when Dell would announce a smartphone: "The exact timing of Dell's launch is not clear but our sources indicate it is closer to reality than before." Still, Wu's comments have started speculation that the unveiling will be at next month's Mobile World Congress Tradeshow.

Windows Mobile or Android?

Another source of speculation is what operating system Dell's device might use.

There has been a tremendous amount of buzz around Google Android OS, which is available for free and open source. However, many are expecting Dell to continue using Windows Mobile, as that's the platform it used for its earlier handheld line.