Dell is up to something Android-related, but it’s not a phone. According to the WSJ online, Dell engineers are developing a pocket-sized device that is Web-centric, runs on the Android platform, and is slightly larger than the iPod Touch. Unconfirmed sources speculate that the device might begin selling as soon as later this year, which if true wouldn’t be such a bad idea to get a competitor to Apple’s iPod Touch in the hands of Christmas shoppers.

Dell has already tried to compete with Apple’s iPod with developing their own music device, but that project was shelved. This new device is still very much vaporware and could see the same fate, but two reasons come to mind that may help this project reach fruition: the iPod Touch market is almost as big as the iPhone market, and Dell can have a shot at price competitiveness by using the Android OS. How does a pocket-sized, Internet-connecting, Android-powered Dell device sound to you?

Source: WSJ