Dell is working on a mobile internet device (MID) that may or may not run ARM chips and Google's Android operating system, according to a report in The Wall Street Journal and picked up by other outlets.
Rumors of a Dell-built response to Apple's iPod have circulated for some time.
The Round Rock, Texas, company has already said it might offer Android as an alternative OS on some machines but didn't offer much detail.
The Journal positions this pocket-sized gadget as Dell's response to Apple's wildly popular iPod music player.
Still, there has been some difference of opinion as to what differentiates a MID from a netbook. Some experts say MIDs fall more on the cell phone side of the spectrum than netbooks and that they are more like handheld gadgets with Web connections and will rely on iPhone-like touch-screens rather than keyboards. Others use the terms MID and netbook interchangeably.