The new device will fall into the HP iPAQ line that has been developed around Windows Mobile for business use.
While the new smartphone will still be marketed at corporate users, it is expected to also be targetted at the consumer market.
Details on the consumer mobile are sketchy but reports suggest it will have a touchscreen, keypad and run Windows Mobile 6.1.
Expected in Europe before the end of 2008 it will be be released worldwide in early 2009.
HP is among a host of big names, including Nokia, RIM and Google with its Android platform, seeking to capitalise on the success of the iPhone in the consumer market.