Updated from 12:30 a.m. EST

Dell is preparing a move into cell phones as early as next month, the

Wall Street Journal

reports, citing people familiar with the matter.

The computer company has had a group of engineers working on the phones for more than a year from an office in the Chicago area, these people said, according to the newspaper. They produced prototypes built on


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Android operating system and


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Windows Mobile software.



reports Dell is focusing on so-called smartphones, higher-end devices that include features such as Web browsing and email, including one with a touch-screen similar to


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Dell is trying to increase its sales as its mainstay personal-computer business struggles in the recession, the



Shares of Dell slid Thursday on news that $280 million in expenses related to restructuring efforts and stock-option expenses would cut deeply into its fourth-quarter results.

Dell closed down 4.5% to $9.50 Friday.

This article was written by a staff member of TheStreet.com.