The Dell Mini 3 smartphone’s debut in China and Brazil isn't just big news because it marks the computing giant’s entrance into an increasingly hot market segment. It’s also significant because it marks a new – and potentially risky -- global strategy.  

 

On the plus side, “the difference between a smartphone and a netbook doesn’t really exist,” Michael Morgan, a wireless analyst for ABI Research, told TMCnet. “So for Dell (News - Alert), this is a natural extension of their strategy.”

 

At least in China, Dell benefits by having one of the best operating systems: China Mobile’s version of Google (News - Alert) Android, or ‘open mobile’ system.

 

“3G is really just starting to take off in China,” Morgan said.

 

Because the new Mini 3 runs off China Mobile’s (News - Alert) “Android derivative,” Dell doesn’t have to worry about developing the best user interface because it’s been done for them, Morgan said.

 

“Now they can focus on the lowest cost,” Morgan said. “That is their strength – squeezing the supply chain to get the best possible price for components to bring a low price to the marketplace.”

 

However, “not having to worry about the user interface really only applies to the China Mobile part of this deal,” said Morgan. “As [Dell] moves to other markets, they’re going to have to design new user interfaces.”

 

While the Dell Mini 3 is more likely to be successful in markets where low cost is a priority, it will be interesting to see how well the phone does in more developed markets where cost isn’t an issue, namely the United States and Europe. While the Dell 3 Mini has not yet been announced for a U.S. or European release, Dell carries agreements Vodafone in Europe and AT&T (News - Alert) and Verizon in the U.S. market, ABI Research has noted.

 

Rob Cihra, an analyst with Caris & Co., told the Wall Street Journal that Dell’s move makes sense because smartphones are an attractive market for PC makers. However, Cihra also told the Journal he is skeptical that Dell can stand out. By relying on Android instead of proprietary operating systems (like those created by Apple for the iPhone and Research in Motion for BlackBerry (News - Alert) devices), Dell is “almost ensuring that it’s going to be an also-ran product.”