Dell and AT&T yesterday announced the official launch of the Dell Aero, an Android-based smartphone.

The Aero is Dell’s first foray into the highly competitive U.S. smartphone market and follows closely on the heels of the Dell Streak, the company’s 5-inch Android-based tablet.

The Aero comes running Android 1.5 (Cupcake) and features a 3.5-inch touchscreen, 5-megapixel camera with 8x zoom, Wi-Fi, Bluetooth and memory upgradable to 32GB. The phone comes preloaded with Microsoft’s QuickOffice for light management and editing of documents on the go.

The Dell Aero is available for $99.99 with a two-year contract, and $299.99 without.