Dell: In Pilot Stage Of Handset Development With China Mobile

Computer maker Dell Inc. (DELL) said Friday it is in the pilot stage of handset development with China Mobile Ltd. (CHL), the world's largest mobile operator by subscribers.

Steve Felice, Dell's president of small and medium business, said the company has yet to set a launch date for the first handset or a price range.

In recent months, major personal computer makers have been turning their attention to smart phones - mobile devices that offer access to email and support other multimedia functions - as they face stiff competition and pricing pressure.

Finding new ways to grow is especially important for Dell, which has lost market share to major rival Hewlett-Packard Co. and is determined to boost its sales.

Dell said its revenue in the Asia-Pacific region for the quarter ended July 31 fell 21% from a year earlier to US$2.0 billion.

Felice said the company expects its Asia-Pacific operations, including Japan, to resume revenue growth next year because of improving demand.

The executive's comments come after Dell reported a 23% drop in fiscal second-quarter earnings due to lower sales, as it continues to battle weak technology spending, but it said it sees signs of improvement.

-By Lorraine Luk, Dow Jones Newswires; 852-2802-7002; [e-mail]