Dell Plans Pocket Web Gadget: Report

Dell(DELL Quote) is developing a pocket-sized device for accessing the Internet, according to The Wall Street Journal, which says that the product could go on the market later this year.

Citing people familiar with the company's plans, the Journal says that the device will run on Google's(GOOG Quote) Android software and will be slightly larger than Apple's(AAPL Quote) iPod Touch.

Another person who was briefed on the project told the newspaper that Dell may start selling the gadget later this year, although the plan could be delayed or even scrapped.

A number of tech companies, including Apple and Intel(AAPL Quote) are pushing Mobile Internet Devices (MIDs). A move into MIDs would boost Dell's presence in the consumer space; there have already been rumblings that the company is planning to enter the smartphone market.

Rumors recently surfaced that the firm is eyeing a major acquisition, possibly in storage or services, although Palm(PALM Quote) has been mentioned as a possible M&A target.

The Round Rock, Texas-based company has not yet responded to TheStreet.com's request for comment on this story.

Dell's stock has risen steadily since March, and the company has also been cited as a bullish option play.

Nonetheless, the firm's shares were trading Tuesday at $13.72, well below their 52-week high of $26.04.

Dell has certainly felt the strain of the spending slowdown, which has hammered sales to consumers and businesses. During its recent first quarter, Dell suffered sequential and year-over-year sales declines in all areas, most notably in desktop PCs and network storage equipment.