Dell has partnered with Chinese search engine company, Baidu, to develop tablet and smartphone devices, according to internet reports.
A Dell spokesman told Reuters the partnership with Baidu would be in the tablet space, adding that both companies were also working together on mobile handsets.
Baidu recently announced plans to launch a mobile operating system (OS) based on Google's Android OS, aiming to expand its mobile division, reported the Financial Times.
Dell reported profit of $890m in its second quarter, up 63% on the same period a year ago, but not all its investors are happy after sales missed target.
Although earnings were up, fuelled by business and government spending on refreshing IT equipment, revenue rose only 1% to $15.66bn, short of the $15.75bn that analysts expected.
Google has also moved into the hardware market after striking a deal to buy Motorola's handset division, Motorola Mobility.
The reported £7.65bn deal - Google's biggest ever - is expected to be sealed by the end of this year, or early 2012.
Dell began growing its tablet portfolio earlier this year with the Latitude XT2 tablet, which runs Windows 7, and the Dell Streak 7, which runs Google's Android operating system (OS).