Dell has considered entering the wearable computing field amid a drop in its PC sales and slow adoption of Windows 8 tablets.
With the current move, the US PC maker joins firms including Apple, LG, Microsoft, Sony and Pebble who have joined in the smartwatch race.
Dell personal computing global VP, Sam Burd, was cited by the Guardian as saying that the company was exploring ideas in that space.
"There are challenges in cost, and how to make it a really good experience," Burd said. "But the piece that’s interesting is that computers are getting smaller. Having a watch on your wrist – that’s pretty interesting, pretty appealing."
Google is also testing a wearable Android powered, internet-connected Google Glass, which is an eyeglass-style gadget that views computerised data in the user’s field of vision.
During the quarter ending May 2013, Dell reported 9% drop in PC revenues to $8.9bn compared with the year before, while income shrank 65% to $224m.
"We haven’t announced anything, but we are looking at the technology in that space," Burd said. "I don’t see any magic new form factor like the iPad – I don’t think anybody saw how that was going to change devices. But the number of [computing] devices per person is exploding."