The Wall Street Journalreports that Dell is developing a small device that the people could use to access the Internet. The WSJ says people who have seen it say it is a little bigger than the iPod Touch.
The gadget would run on Google Inc.'s Android software, these people said. Two people who saw early prototypes described the device as slightly larger than Apple Inc.'s iPod Touch, which is similar to the iPhone but does not have cellphone capabilities.
Another person who was briefed on the company's plans said Dell may begin selling the device later this year, though this person said the plan could be delayed or scrapped entirely.
The development effort is one of the first experiments by a big-name PC maker in a nascent category of products known as mobile Internet devices, or MIDs,which are designed to fill a perceived gap between mobile phones and laptop computers.
A Dell spokesman declined to comment on any plans for the product category.
The article says Dell has also been developing smartphones that would be powered by Android. The Dell smartphone rumor first surfaced in January. If the Wall Street Journal is correct then it sounds like Dell plans to take on both the iPhone and the iPod Touch using Google's smartphone operating system.
The Wall Street Journal 
