According to reports, Dell began working on the device last year after failing to develop a device capable of competing with Apple’s iPod music players. The device may be available later this year, though the insider told the Wall Street Journal that such a plan could be delayed or scrapped entirely.

Another interesting twist is that the device, targeted at a point between MIDs and netbooks, would not be powered by an x86 CPU, which is the majority of Dell’s sales are to date (with other CPUs including Intel’s Itanium, scrapped several years ago). In its place, Dell will be turning to an ARM CPU of undisclosed specification, power and ability (as there are several varieties of ARM CPUs for all kinds of tasks).

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