NEW YORK (

TheStreet

) -- The

Google

(GOOG) - Get Report

Android smartphone market is set to get a little more crowded as

Dell

(DELL) - Get Report

prepares a U.S. entry.

After introducing its first cell phone in China this year, Dell is reported to be working on an Android-powered device for

AT&T

(T) - Get Report

that could arrive early next year,

according to a story

by

The Wall Street Journal

.

Dell's shrinking share of the PC market has put pressure on the tech giant to find new areas of growth, like services -- exemplified by the

Perot Systems

(PER) - Get Report

deal last week -- and in mobile devices.

Industry observers expected Dell to push into phones after it hired

Motorola

( MOT) executive Ron Garriques two-and-a-half years ago.

Dell's decision to go with Android increases the pressure on Motorola and its effort to rebuild itself around the Android software.

The move would be more good news for Google and its strategy to extend its search business beyond the desktop to mobile devices.

-- Written by Scott Moritz in New York