Remember when Dell dropped the Axim PDA and the world yawned like a slutty hippopotamus? Well, it looks like it was because even Dell knew that PDAs were out and smartphones (PDAs with calling capabilities) are in. They've contracted Quanta Computer—which incidentally supplies Dell's laptops as well—to build them a smartphone for launch in Q4 2007.
There aren't many details to be found, but "sources" claim that it's codenamed "Fly" and will have Windows Mobile 6, HSDPA, and possibly a QWERTY. Since we're loath to use a smartphone that doesn't have a keyboard, we hope that last part's true.
In a market dominated by HTC, we'll just have to see what Dell needs to do to bring something new to the table.