Dell is entering the smartphone market with the Dell Mini 3 handset based on Google's Android operating system. The phone will be launched first in China and Brazil.
The phone will be sold in China in a deal with China Mobile and in Brazil via the Claro network. It is due in stores by late November in China and before the end of the year in Brazil.
The company said that relationships with other mobile networks, including Vodafone in the UK, could see it roll out elsewhere.
Earlier this year Dell launched the first 3G-enabled netbook in China.
Ron Garriques, president of the Dell Global Consumer Group, said: "Our entry into the smartphone category is a logical extension of Dell's consumer product evolution over the past two years.
"We are developing smaller and smarter mobile products that enable our customers to take their internet experience out of the home and do the things they want to do whenever and wherever they want."