Dell Inc. has chosen Foxconn, a major Taiwan-based electronics manufacturer as original equipment manufacturer (OEM) for its first smartphone Mini3i, Apple Daily Taiwan reported on Wednesday, citing unnamed source.

Dell, the world's No. 2 maker of PCs, launched a handset called the Mini3i at a news event in China on Monday. It will offer a full complement of music, games and other downloadable content.

Dell spokesman Matt Parretta acknowledged that his company is developing a mobile product for China Mobile, China's biggest cell phone carrier , but he declined to say whether that device will closely resemble the smart phone that was on display Monday.

Dell said the Mini3i is a proof of concept prototype that was part of China Mobile's unveiling of its mobile market applications store in Beijing.

According to the All Things Digital Web site, the Dell prototype runs on a Chinese version of Google's Android operating system. It has a 3.5-inch touch screen and a 3-megapixel camera.

Analysts said the phone did not support Wi-Fi and would operate on a 2G network. While more advanced technology is the standard in other countries, China is still developing a 3G network.

Neither Dell nor China Mobile would comment on pricing or when the device would be formally introduced.

The source predicted the annual sales of Mini 3i would be 500,000 to one million.

China is the world's biggest cell phone market, with 600 million subscribers. Analysts say 192 million phones will be sold there next year, up from 180 million this year.