HP is said to be preparing a rival to Apple's popular iPhone, with sources suggesting that it will ship before the end of the year. HP has refused to confirm or deny the rumours.

Reports in The Wall Street Journal claim that HP is preparing an addition to its line of iPaq smartphones and handhelds that will have a touch-screen and chiefly target the consumer market.

Many of HP's current iPaq models already have a touch-screen, but these Windows Mobile devices are designed to work with a stylus, not a finger-driven user interface as on the iPhone.

Some vendors have already released handsets with a touch-driven user interface overlaying that of Windows Mobile, such as HTC's Touch models and Samsung's Omnia.

The rumours seem to suggest that HP could be preparing a similar style of model, but a spokesperson for the company said that it could not comment on unannounced products.