AT&T and HP have announced the imminent release in the US of the HP iPAQ Glisten. The smartphone is AT&T's first to feature an active-matrix organic LED screen, and comes with Windows Mobile 6.5, a full Qwerty keyboard and a 3.1-megapixel camera.

"The product has been designed to help meet the demands of our business customers," said Michael Woodward, vice president for AT&T's mobility phone portfolio. "As such, the device features several Microsoft Office applications including Excel, Word and PowerPoint."

The device also features a touch-friendly interface, mobile email capabilities, built-in Wi-Fi and GPS functionality, and will be able to connect to over 20,000 AT&T wireless hotspots, the firm said.

Users will be able to manage single contact lists and synchronise them wirelessly or with a PC using a supported email account, and use an integrated inbox that summarises recent emails, calls and texts.

The Glisten will be available in the coming weeks for $229.99 (£180) through AT&T business services, HP corporate sales, small and medium business and consumer web sites at AT&T.com and HP.com as well as through third-party e-commerce sites.

However, Chris Jones, co-founder and principal analyst at Canalys, warned that HP will "find it tough" to break into the market.

"BlackBerry has a huge market share in the US, around 50 per cent, and Apple accounts for around another 25 per cent," he told V3.co.uk.

"HP has been trying in the market for a number of years, and all other vendors have had the same issue: how to break the market dominance of the two leaders."

The handset will also have problems competing on price, according to Jones. BlackBerry maker Research In Motion is currently running two-for-one deals that bring the price of some handsets below $100 (£60), less than half the price of the Glisten.

The analyst pointed out that, while HP may be able to exploit its existing enterprise market position, the situation is complicated by the new device using Windows Mobile as an operating system.

"Windows Mobile has lost a lot of market share, but also mindshare. It's still playing catch-up, and the smartphone operating system market is fragmenting rather than consolidating," he said.

"The Palm webOS and LiMo phones are out next year, along with a host of other platforms."