Filed under: Competitive strategy, Google (GOOG), Apple Inc (AAPL), Hewlett-Packard (HPQ), Nokia Corp. (NOK), Research in Motion (RIMM)

The prevailing wisdom would have to be that there are too many smartphones on the market. Nokia (NYSE: NOK) just launched one to compete with RIM (NASDAQ: RIMM) and Apple (NASDAQ: AAPL). Google (NASDAQ: GOOG) is releasing the G1 later this month. Most of the other large handset companies are also in the business. But Hewlett-Packard (NYSE: HPQ) now wants to jump in.

According to The Wall Street Journal, “The new phone will likely be released in Europe within the next two months.”

Given the amount of competition in the market, it is hard to see how HP will be able to pick up much market share. It is hard to imagine that it can offer features beyond those the iPhone and BlackBerry already have.

The problem with the new device may be greater than that. HP has had the image of being a “winner” over the last two years as financial results have increased. Its PCs and printers are leaders in their fields.

Investors would think that HP would want to dodge a failure in a crowded market to avoid the market looking at the company as one that makes poor product decisions and tries to expand beyond its core franchises. To make matters worse, HP will probably never sell enough phones to meaningfully add to its revenue.

Douglas A. McIntyre is an editor at 247wallst.com.

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