Dell reportedly plans to resume its handheld device business and the company may team up with Foxconn Electronics (Hon Hai Precision Industry) to develop Windows Mobile-based handheld devices, according to market sources in Taiwan.

Dell has been reorganizing its team for handheld devices since it hired Ron Garriques, a former executive vice president at Motorola in charge of its cell phone division, in early 2007, the sources indicated.

Dell apparently has accelerated its move towards the handheld device segment following Acer's recent announcement of acquiring Taiwan-based smartphone maker E-Ten Information Systems, the sources added.

Foxconn, an important partner for Dell, is also reportedly recruiting talent from other Taiwan-based handset makers in preparation for accepting orders from Dell, the sources pointed out.

Although two affiliated companies under the Foxconn Group ? Chi Mei Communication Systems (CMCS) and Mobinnova ? have already landed smartphone orders from other handset vendors, Dell is expected to team up directly with Foxconn for the production of handheld devices, including GPS PDAs and smartphones, the sources added.