Dell will launch an Android smartphone called "Mini 3" in China (together with China Mobile) and in South America (there in Brazil) - the company has confirmed this in a press release. According to its name, it is seen as a rounding off of the Mini 9/Mini 10 netbooks, and perhaps a better equipped device for the American and European markets will be inserted in between. These are the markets that Dell is leaving out for the time being, probably because the competition from Iphone and the rest of the Android devices (like the now appearing Motorola Milestone) is simply too strong.
The specifications are still open apart from the fact that it is based on Android and thus will probably have a touchscreen. However, given the targeted markets, it may well be that weaker hardware will be used to keep the cost and price (which is also not yet known) low.
We can only hope that there are no high shipping costs typical for Dell and that the full functionality does not have to be purchased through upgrades 🙂