Dell working on new Internet device

A new report published in the Wall Street Journal reports PC maker Dell is working a new Google Android-based Internet device aimed at competing with the Apple iPod Touch device.

The pocket-sized device, which is in early prototype stage, is "slightly larger" than the iPod Touch, and could be released sometime during the second half of 2009.  One of the unnamed sources the WSJ spoke with, however, said the project could be pushed back and later canceled at the company’s discretion.

I’m not sure if any company should try and develop a device designed specifically to "compete" with the iPod Touch, but there certainly is room for competitors in the market.  Considering Dell’s reported project could go from possible release in the second half of 2009 all the way to non-existence, interested consumers certainly shouldn’t hold their breath on this news.

Dell is known for getting consumer hopes up only to bring them crashing back to reality, which makes some journalists and bloggers skeptical of the device.  It wasn’t too long ago when I was writing about a new Dell-branded music player that was supposed to utilize Zing software, though the device never made it to market.

The company also reportedly is believed to be working on a new smartphone to compete with the Apple iPhone, Research In Motion (RIM) BlackBerry, and similar smartphones.  Similar to the Dell-branded music device, however, the phone also never made it to market, and simply vanished.