HP to do smart phone as PDA market plateaus

At its far-reaching mobility event this week, HP revealed its intention to bring to market at least one smart phone this year.

Details were sketchy. The computing giant - which has been at the forefront of PDA sales for some time - wouldn't confirm any such device will be based on the most likely software platform, Microsoft's Windows Mobile operating system. Microsoft has been a key HP partner in PDAs, PCs and servers for years.

Nor was there any word on branding and manufacturing of any device.

"It will carry the HP brand," said Ted Clark, senior VP and GM for mobile computing within HP's Imaging and Personal Systems division. "But we are not saying there will be no co-brand."

The move may seem unlikely - HP has never been a maker of cellular phones, though it has brought to market wirelessly-connected iPaq handhelds in the recent past.

It is also a major partner of Nokia's, a vendor that is highly unlikely to use Microsoft's mobile OS given its strong backing and investment in the Symbian OS.

However, the market for pure PDAs - according to a range of analyst research - is stagnating and devices that feature voice and services connected over cellular networks are seeing strongest growth.

Rick Roesler, VP Handheld Mobile Computing at HP, said that HP will still continue in the PDA market and differentiated sub-$199 PDAs that can be matched by smart phones and even other portable devices such as iPods from the more powerful, typically larger-form factor handhelds that HP will sell.

Ken Dulaney, VP mobile computing at Gartner, said in a separate discussion that to be successful HP must listen to customers - as it did with the 6315 handheld sold through T-Mobile in the US but also separate to any network contract - as operators don't always understand what the market needs.

Later this month at the 3GSM show in Cannes, HP is expected to unveil a new keyboard-based handheld that features location-based services through GPS satellite tracking. It has already been involved with one such device with phone software company Openwave and operator Bell Mobility in Canada.

The smart phone comments came as HP showed off "the biggest rollout of laptops" in its history, including tablet PCs and various initiatives to get organisations connected to their email while on the move.