That might be about to change.
According to a Forbes report, Dell could be bowing a brand new smartphone / converged media device as soon as early 2008. It mentions a new device that is being jointly developed with Quanta and has video, an MP3 player, and Internet access. This device will make an appearance "early next year". Whether it is a new type of standard PDA with Wi-Fi, or an all-new device that has cellular radios on board, the article doesn't detail. Nothing is known about its potential operating system or what other technologies might be on board. The only thing that is certain is Dell needs a product like this right now.
To be quite frank, I don't think Dell can produce an iPhone killer. Can it put together a solid smartphone? Maybe. With help. For the time being, anyone hoping to buy a smartphone from Dell is going to have to be satisfied with the Nokia E Series devices listed for sale on the Dell Web site.