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Dell plans re-entry into MP3 player market

updated 11:20 pm EDT, Tue July 29, 2008

Dell to Revisit MP3 Market

Dell is planning to return to the MP3 player market it left, company executives tell the Wall Street Journal. Though not willing to disclose much about its strategy, the Texas-based company is designing a small-screen, small-control music player that would use Wi-Fi to reach online music services. The device would cost less than $100 even with wireless in place, Dell says. Unlike Dell's past attempts, the device would support multiple online music stores rather than a lone, proprietary store like the now-defunct MusicMatch.

The PC builder itself would also offer a service of its own that would include movies, though this new device wouldn't support them itself, according to the report. It would instead limit the titles to playback on a computer. Dell is said to have hired analyst Rob Enderle to consult on the strategy and is mulling prices that would either put the profit emphasis on the subscriptions or the immediate device cost.

The company is also aware of the challenge of returning to the market with the iPod's dominant marketshare and has even enlisted the help of former Apple officials for the project; jukebox software from Zing, founded by a former Apple official, will replace more generic software such as Windows Media Player for managing the player's content. Similar to iTunes' library sharing or Creative's Centrale, the software will give access to a collection away from the host computer.

The unnamed player and software, however, won't be directly pitched against the iPod, Dell consumer sales VP Michael Tatelman says. Instead, the company primarily hopes to integrate the two with the company's PCs as well as outside services. A new set of notebooks and "other devices" from the firm will come preloaded with the Zing-made software.

Testing is still underway for the device, though an ideal schedule at this stage would launch it in September and price the player below $100, competing against budget and screenless players rather than the $150-plus price range of most mainstream MP3 players.

Dell has historically fared poorly in the category. The company entered in 2003 with the Dell DJ as a reaction to the success of the iPod but never gained more than a small portion of marketshare. The company moved towards smaller players such as the iPod mini-like Pocket DJ and eventually the DJ Ditty before bowing out in 2006 to refocus on its computer business.



By Electronista Staff
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Comments

  1. leamanc

    Fresh-Faced Recruit

    Joined: Oct 2003

    +3

    When will they learn?

    When will Dell learn that copying everything Apple does in the consumer market is not the road to re-gaining their rep as the top PC vendor in the USA?

    The only thing innovative I've seen them do in the consumer market in recent memory is embracing Ubuntu as a desktop operating system. Even though they've sort of half-heartedly done so, they were the first major vendor to offer Linux as a consumer OS.

    (And this post is about Dell's consumer offerings. I do like their options for the server room. Being able to buy some high-quality server iron with no OS--and no MS tax--or with a choice of Linuxes pre-installed is nice. I also like DRAC and their redundant power options.)

  1. digiprod

    Fresh-Faced Recruit

    Joined: Sep 2007

    +7

    Give it back

    Dell should give back the stockholders money!

    Comment buried. Show
  1. luckyday

    Fresh-Faced Recruit

    Joined: Apr 2008

    -11

    ...

    Re-entering the mp3 market is copying apple? I hate to break it to you by apple certainly didn't invent the mp3 player. It was only a matter of time before the technology became cheap enough that anyone could put out a decent mp3 player.

  1. msuper69

    Professional Poster

    Joined: Jan 2000

    +3

    Wanna bet...

    that within a year Dell will once again be leaving the MP3 player market to focus on their computer business. Sigh.

  1. groucho

    Fresh-Faced Recruit

    Joined: Dec 1999

    +2

    cheap yeh

    "became cheap enough that anyone could put out a decent mp3 player"
    "Anyone" - as proven by Dull. Another thing proven is that "cheap" does not cut it. Buying cheap is certainly buying expensive since sooner (or later) most end up buying an iPod. It's the user experience, stupid!

  1. MacScientist

    Junior Member

    Joined: Feb 2000

    +2

    Anyone remember ...

    ... when Dell sold iPods?

  1. Bobfozz

    Fresh-Faced Recruit

    Joined: Jul 2008

    +2

    Doesn't translate

    Dell Computers (ugh) and now Dell MP3... I just don't see people making the connection. Work to your strengths and market to them. With Enderle helping, they might not last even a year. I can't believe he writes once a week for Macnewsworld when he is so obviously a PC lover. He probably dreams at night of PCs taking over once again.

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