While Dell seems to be denying the rumor (at the moment), British firm Marketingweek seems to think they will release some sort of Android platform PDA phone at the 3GSM conference. To quote;

“Marketing Week revealed last year that Dell was also planning a move into mobile phones after poaching Motorola executive Ron Garriques to run its new global consumer group (MW March 1, 2007).

Dell already produces personal digital assistants (PDAs) and strategy analytics director Neil Mawston says: “It makes sense for Dell to have a high-profile entry back into the market because its last effort with PDAs pretty much flopped.”