The Texas-based computer maker is reportedly planning to release a cell phone early next year incorporating Google's Android operating system.
Late this past summer in China, Dell revealed a version of the new smart phone, described as a "proof of concept mobile device prototype."
It's believed the hiring of former Motorola cell phone division executive Ron Garriques in its consumer technology group two years ago has a lot to do with Dell's move into mobile here. The development also comes at a time when Dell is seeing a reduction in sales across the board with its PCs and laptops.
As for Android, it's a direct competitor to the operating system found on Apple's iPhone, which already sees strong competition from the likes of Blackberry with its Windows Mobile software.
While Apple has an exclusive arrangement with AT&T as their only wireless carrier, AT&T does not have the same restrictions placed on it, and can make deals with anyone it wants.