According to a recent report by the Wall Street Journal, Dell is testing a new digital music player to complete with the Apple iPod. Coupled with the new device will be a new download service similar to iTunes.
Dell's first foray in 2003 into the portable digitial music player market fell flat and was shut down in 2006. This time, Dell believes that the formula of a proprietary player+service will be successful. The device would connect to the online download service via WiFi and cost less than $100.
Dell is hoping to tap into a broader range of consumers that would typically buy an Apple for the entertainment value. It is expected that Dell will launch this service by Fall 2008.