They say in times of tough economic conditions, only companies prepared to adapt will survive. Computer manufacturing giant Dell has confirmed this tactic in their latest announcement that beginning next month, they will be throwing their hat into the smartphone arena.

Intending on increasing sales to counter its crumbling PC business thanks to the current recession, the world's number-two PC maker has been quietly developing smartphones built on both Google's Android operating system and Microsoft's Windows Mobile platform.

The smartphones segment (high-end mobile phones that offer many of the functions found traditionally on PCs) has proven the fastest growing segment of the cell phone industry year after year.

Dell's smartphone push would come as the company attempts to retool its image and demographic following its fall as the world's largest PC builder to Hewlett-Packard two years ago.

Interestingly enough, back in 2007 Dell snatched up the former cell phone chief of Motorola (Ron Garriques) but a non-compete agreement barred Garriques from working on mobile phones until February 2009.

It will be interesting to follow what happens next month when the non-compete agreement expires.