WSJ claimed on Saturday that Dell may have permanently cancelled its plan to launch a new series of MP3 players:
Dell's plans to relaunch into MP3 players have been shelved in what may be a permanent cancellation, according to claims made by the Wall Street Journal late Sunday [subscription required]. Alleged sources say that at least one miniature player scheduled to launch alongside a media jukebox and sharing suite from Zing has been delayed past its original fall target while the software alone goes ahead. The unnamed device is currently postponed "indefinitely" and so may not be released at all, the reported insiders note.
The exact reason behind the sudden backing off from a portable player is unknown, though the tip points to the need to finalize the system as creating problems for any potential release. Separately, Dell also faces a weak economy and would be hindered by launching a media playback device well after iPods and Zunes have been updated.