CEO Meg Whitman believes it is imperative that the company breaks into the sector as smartphones are now considered fundamental computing devices.
"We have to ultimately offer a smartphone because in many countries of the world that would be your first computing device," she told Fox Business News.
"We are a computing company, we have to take advantage of that form factor."
HP recently launched a mobile business unit to spearhead its development of a Windows 8-powered tablet. Previous reports suggested that it is working on a touchscreen phone as a flagship platform for its webOS operating system.
Whitman took over the top job at HP one year ago, succeeding Leo Apotheker in the post.