Dell is working on a digital music player designed to rival Apple's iPod.

According to the Wall Street Journal, the device, set to hit the market in September, includes a display and navigation/control buttons alongside a Wi-Fi connection that would allow users to access the internet.

Expected to retail for £50, Dell hopes the digital audio player will make a better impact than the DJ Ditty - Dell's previous assault on the market in 2003, which failed to make an impact.

Dell's vice president of consumer sales Michael Tatelman admitted the PC manufacturer is also developing software that will let portable PC users download and organise music and movies from a number of online sources.

See also: Dell Studio Hybrid PC makes 70% power saving