Reports in the market suggest that Dell is working with Quanta on this mobile device product which would feature support for video, music and web access.
This device could be launched in the market early next year.
Dell has been concentrating on their primary business of selling computing products and solutions. They have exited markets where they were selling portable music players and PDAs.
Dell had revealed earlier this year that they were no longer selling their Axim X51 range of PDA products.