When I visited Hewlett-Packard's regional office in Singapore recently, the folks there proudly showed off a PDA-phone hybrid that doesn't even work in Singapore.

The rw6100 functions only in South Korea, but it is an impressive-looking device nonetheless. The silver-coated gizmo comes with a slider mechanism, reminiscent of the popular Samsung SGH-D410. It supports two flavours of wireless -- 802.11b and CDMA -- and runs on the Microsoft Windows Mobile 2003 Second Edition operating system.

It's also a sign of things to come, for the computer giant is taking this phone-cum-PDA segment very seriously, indeed.

"We are number one in the traditional pen-based handheld market," Adrian Koch, HP's Asian chief for PCs, Notebooks and Portables, told CNETAsia. "We established that position over the last four quarters. The competition is fading away."

"Now, we are at an inflexion point where the pen-based handheld market is still growing maybe 4-6 percent, but converged products will be the big growth opportunity, growing anywhere between 20-40 percent, depending on whom you believe," he added.

Koch distinguishes between HP's data-centric converged handhelds like the h6345 and voice-centric phone products such as the rw6100. Whether you agree with this classification or not, the rw6100 is the closest thing to a phone that HP has released so far. And it won't be the last attempt by the organisation.

"The mobile phones in Asia look very different and have much more variety than in the US where they all look more or less the same," Koch said. "So there's a very different need centred on design. It's not a commodity product but a fashion good."

HP seems to be making all the right noises. But to break into the phone market, one needs much more than that. Try a reorganisation.

From computers to phones
Computer companies have never had much luck with mobile phones. Companies like Acer and Asustek have tried to diversify into it, but have found the going hard.

Some of the largest mobile phone vendors in the world have mobile communications as a core business, including Nokia, Motorola and Siemens. Sony Ericsson doesn't sell computers, either, although its parent does. Samsung and LG have broad portfolios, coming from the world of consumer electronics, but it is instructional to note that both have dedicated business groups for telecommunications.

Likewise, if HP is serious about the phone market, it has to resist lumping phones into a broad category that comprises other computer products. In his official designation as senior vice-president for the Personal Systems Group (Asia-Pacific and Japan), Koch oversees personal computers, notebooks, tablet PCs, PDAs and, now, phone devices. But handsets aren't exactly notebooks. They aren't like most other computer products. I can see several differences that would be crucial to success.

Two to tango
For a start, computer vendors have strong control over the pricing of their products, whether they are sold through the Internet or via retailers. In the mobile phone space, the mobile operator plays an important role. Often, the market performance of a phone is dependent on the partnership between the operator and phone maker.

For example, Sony Ericsson's T610 was featured in numerous telco promotions last year. Operators heavily subsidised the cost of the handset, customers responded, and Sony Ericsson's comeback was assured. LG also scored a coup and established a footing in Singapore with its exclusive deals with StarHub.

In theory, HP can demonstrate product line commitment and promise higher data revenues through triple wireless products, so it should be in a good position to negotiate for operator support. But does it sufficiently understand the market to do so?

The X factor
Then there's the question of style. When you sell a notebook, you're selling the size, weight and features. Design plays a part in differentiating one product from another, but not by much.

For phones, built-in features have long outstripped demand. Consumers pay for usability, design and intrinsic value instead. Post-merger Ericsson failed to understand this, and paid with declining market share.

This is also why consumer electronics companies like Samsung and LG do well in the mobile phone market. They understand that the importance of design goes beyond weight and size. If IBM comes into the mobile phone space bearing its philosophy that you can choose any colour you want, as long as it's black -- how many phones do you think it'll sell?

Design-driven companies have it in their culture, and it shows in all the products they carry. Apple has it, Microsoft doesn't. Sony has it, IBM doesn't. Does HP have it?

If the answer is no, then it may be time for HP to "invent" a dedicated phone division. After all, if you want to succeed in the phone business, you have to approach it as a phone business.