Dell plans to make smartphones. Remember the Axim?


When cell phone manufacturer Nokia (NOK) recently said it would move into developing netbooks, it was hailed as a wise move that would help the company to compete better by diversifying its product base and expanding into new markets. But when news surfaced today that PC manufacturer Dell (DELL) is considering developing smartphones along the lines of the BlackBerry and the iPhone, the news generated a big yawn.

The reason: Dell's move comes on the heels of less than stellar first quarter earnings and the fear now, is that a move into smartphones could further squeeze Dell's margins in the years ahead. Besides that, it seems likely that any new smart phone from Dell would be more of a "me-too" product rather than something truly disruptive, as the iPhone was when it hit store shelves.