Netbook Evangelist | The blog with information for netbooks & tablets

Following rival Apple’s lead, Dell is working on a new handheld mobile internet device that will be slightly larger than an iPod Touch and lack cellular connectivity.

Dell plans to sell the device from later this year – if it doesn’t can the ‘risky’ project first reports ComputerWorld.com.

Prototypes of the device are running Goolgle’s Linux-based Android operating system, although Dell has refused to comment on the device, saying that it didn’t comment on rumours and speculation.

Mobile Internet Devices (MIDs) combine the attributes of netbooks and smartphones in a pocket-sized package, although they have yet to gain much market traction owing to complaints about short battery life and small screens.

Dell’s device would be its first MID – if the rumours are true, but because Dell relies on volume sales the proposed foray into a cutting edge category such as MIDs would be quite outside standard operating procedure.

MIDs are more similar to smartphones than netbooks, implying the need for Dell to find partnerships with wireless carriers who can provide services like WiMax.

Dell has been rumoured to be looking at smartphones before, such as at the GSMA Mobile World Congress in Barcelona earlier this year when there was much talk of an Android-based smartphones – which turned out to be vapourware.

The last pocket-sized device Dell had which anyone knew about was the Axim PDA, which quietly died two years ago owing to poor sales.