Summary

Dell long rumoured move to smartphone now looks set with the "ophone".
This is and is not a blatant iPone rip-off  and hopefully a good move for Dell to experience the mobile market.

Analysis

China Mobile, the leading mobile operator in China will have to invest heavily to move its customers from 2G to the 3G standard TD-SCDMA. Not because of the lack of appetite from the Chinese consumers for data mobile services, but because of the many standards available: W-CDMA from China Unicom and CDMA2000 EV-DO from China Telecom.
Up to 80% of 3G handsets active in mainland China will be W-CDMA, and it is estimated that there are already about 10 million WCDMA users in China, mainly purchased from Hong-Kong and overseas where the networks have been launched much earlier, or from the grey market in China. While the W-CDMA functions are not active now on these devices, it will be easy for China Unicom to activates those devices in 200 major cities as it launches 3G services in Q4.
 
The ophone handset is based on android, initially in cooperation with Lenovo, samsung and LG. Ophone is more of an operating system than a specific phone. The Dell mini 3i is expected to be released later this month along with two other Ophones, the Lenovo O1 and the Dopod A6188. Lenovo O1 is expected to be the only  TD-SCDMA phone, while Dell and Dopod devices will be 2G.
This is mainly speculation, but does sound plausible, as a strategy by China Mobile to counter the threat of a collaboration between China Unicom and Apple on the iPhone.
 
In a typical Chinese fashion, the ophone provides a good answer to the market needs:
- positive branding, by obvious association to a very strong and expensive brand
- build on the success of te fake iPods and iPhones
- Chinese developed and made
- support from an ophone developer network , outside of google
 
 
What about Dell?
  • they did not come up with the name, this is a Chinese branding and positive positioning to the market
  • a 2G device on a platform developed by other more seasoned players sounds like a good place to start in this industry
  • message against Apple?
  • entry into a huge and still growing market, with the support of the main mobile operator
  • proof-of-concept work, before bringing in specific Dell characteristics and moving onto other markets and devices (see my other analysis here)

Analyses are solely the work of the authors and have not been edited or endorsed by GLG.