Thursday, The Wall Street Journal issued a report concerning Dell’s new smartphone, about which the media have been speculating for a while, revealing that the company had had a team of engineers working on the gadgets for over a year from a Chicago office.

The paper, quoting sources with knowledge in the matter, said that the team had developed prototypes modeled on Google's Android operating system and Microsoft Windows Mobile.

One of the models has a touch screen but no physical keyboard, similar to Apple Incorporated’s iPhone, whereas the other is fitted with a keypad that slides out from underneath the screen, according to The Wall Street Journal.

Nevertheless, a Dell representative stated that the company had not offered any information regarding plans to develop a smartphone, adding that they had not made any commitment to anything.

Despite this, The Wall Street Journal informed that the team of engineers had spent the best part of the previous year meeting with suppliers of phone components, phone software companies, along with Asian phone manufacturers.

Even though Dell has taken a leave of absence from the handheld business more than a year and a half ago, there are events indicating that it is planning a return, among which purchasing of streaming-audio software maker Zing Systems back in August.

Currently, given that the demand for PC has been weakening, turning to the development of smartphones seems like a good idea, especially since the handheld market is still a growing one, according to Jeff Kagan, a wireless and telecommunications industry analyst.