According to newspaper reports released earlier this week, PC giant Dell is working on a smartphone that will be powered by the Google Android mobile operating system. Apparently aimed at AT&T and the American market, Dell has said the handset could be ready as early as Q1 2010.

While representatives of both Dell and Google refused to comment, industry analysts have said that the mobile market represents a potentially lucrative area for Dell to move into, given the current economic landscape. With buyers cutting back on consumer electronics like PCs and high-end peripherals, the mobile industry is expected to see growth in 2010 and Dell is obviously hoping to take advantage.