MacRumors.com

The Wall Street Journal reports that Dell has been developing a Mobile Internet Device (MID) based on Google's Android operating system. The device is reportedly slightly larger than Apple's iPod touch, with which Dell's offering would presumably compete in many respects should it eventually be released.

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.

Dell is expected to use ARM processors for the new device, the same platform that powers the iPhone and iPod touch. Back in 2003, Dell introduced its "Dell DJ" music players to compete with the iPod, but the line was discontinued by the end of 2006.