Quanta Computer is developing a PDA handset for Dell, and the new model is expected to be launched in the fourth quarter of this year, according to industry sources.

Quanta said it would not comment on any issue concerning individual clients.

The sources claimed that the Dell PDA handset project, codenamed “Fly,” will develop a model using the Windows Mobile 6 Professional platform and supporting HSDPA. It probably will feature a QWERTY keyboard, though feature details have yet to be determined, the sources said.

Quanta, which is the biggest notebook supplier for Dell, is actively developing products for the PDA handset and 3G phone market, and it currently supplies handsets for Hewlett Packard (HP) and O2. Although the size of Quanta’s handset business is smaller than High Tech Computer (HTC), its position as an ODM without its own-brand business or collaboration with telecom carriers has allowed it to win the Dell PDA handset project, the sources commented.