Dell May Challenge the iPod, Zune

If Apple has a giant target on its back, it's Dell that keeps taking aim. Earlier this week Dell launched its Studio Hybrid desktop, a hip looking miniature sized PC that will do battle with Apple's Mac Mini, and now the company wants to wage a war in the portable music player market too.

According to the Wall Street Journal, several Dell officials have indicated the OEM has been testing a digital music player for the past several months and that it could see the light of day by September, the same time millions of kids will be seen lugging their iPods back to school as dozens of those less fortunate look on in envy with their Zunes. But it's not exactly unchartered territory for Dell, who half a decade ago launched its Dell DJ line, a now defunct music player that never even had a chance to take on the iPod. Now Dell will get that chance.

Dell's new music player will purportedly feature a small navigation screen with basic button scrolls, and will sport a WiFi connection for linking up with online music services. Most surprisingly, the new player is said to be priced at less than $100.

Does Dell have a shot at slicing into Apple's market share with a budget MP3 player, or will it ultimately join the DJ in the gadget graveyard?