Dell tried and failed to take on Apple’s iPod once already, but that isn’t stopping the PC maker from trying again. Apparently the company has been testing a new portable digital media player that it could release as early as September, according to The Wall Street Journal.

Michael Tatelman, vice president of consumer sales at Dell, claimed the company has a different strategy in mind for its next go at Apple. Instead of selling a media player that’s tied to a different company’s music service, it has built a software-based system for a range of portable PCs that let users download and manage content from multiple online services.

The Dell DJ: Dell’s last attempt to take on the iPod.

Dell executives claim that the first such device it has been testing earned favorable results from study participants. The device apparently sports a small display, button controls for navigation, Wi-Fi for connecting to online music services, and most likely a US$100 price point.

To help make sure the device is a hit with consumers, Dell hired tech analyst Rob Enderle as a consultant to help shape the company’s new entertainment strategy. So far, Mr. Enderle hasn’t been able to help Dell get beyond the point of deciding if the company will try to make money off of its media players or from the subscription-based services that will supply content.

There is also a chance that Mr. Tatelman will decide to scrap the project in the next few weeks without ever brining a product to market.

Dell’s last foray into the portable media player market went poorly for the company. It launched its own MP3 player in 2003, then scrapped the line in 2006 after gaining only a three percent market share.

Dell will have to go up against industry leader Apple and the iPod if it plans to compete in the digital media player market, and that’s a battle that so far only Apple has been able to win.