Dell

(DELL) - Get Report

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) - Get Report

Android software and will be slightly larger than

Apple's

(AAPL) - Get Report

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) - Get Report

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)

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.

Dell, which competes with

Hewlett-Packard

(HPQ) - Get Report

,

IBM

(IBM) - Get Report

and

Lenovo

, recently

revamped

its

enterprise computing

story, boosting its efforts in services, storage and virtualization.