There is growing speculation that search engine giant Google and computing powerhouse Dell are poised to pool resources to create an iPhone rivalling mobile device.

Marketing Week reports that ‘senior industry sources’ claim the two firms will announce the project at Barcelona’s 3GSM next month.

There has been a large amount of rumour surrounding Google’s strategy in this area, while Dell – which already produces a line of PDAs – recently snapped up Motorolla executive Ron Garriques to run its global consumer group.