The Wall Street Journal is reporting that Dell is working on a Mobile Internet Device (MID) that lacks 3G to compete with the Apple iPod Touch. The device is said to be slightly larger than the iPod Touch and will use Wi-Fi to provide the connectivity to the web. The gadget is pocketable and designed to be used for web access and as a music player. It definitely sounds like it would be set to go up against the iPod Touch.
If Dell does produce such a device, and the report says it may get scrapped, Dell would be in a position to market it to those who find that Wi-Fi connectivity is good enough. Like the Touch, consumers could forego the expensive 3G data plans and dealing with carriers altogether, something many would find to be a good thing. Dell is not currently in the smartphone market, although it is supposedly working on changing that, and having no arrangement with phone carriers could be leveraged in marketing a non-phone device. Imagine loading the device up with Skype or other VoIP capability and showing potential customers the benefits of free phone calls without the carrier.
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