The HP logo at its headquarters in California and a Palm Pre Plus. (AP)

The theatre of computing wars has shifted forever from laps and desktops to the cupped palm, the world’s largest computer maker has acknowledged by announcing the purchase of a smart phone pioneer that frittered away its first-mover’s advantage.

Hewlett-Packard’s $1.2-billion deal to buy Palm, which was known for PDA (personal digital assistant) long before the acronym came to be associated with “public display of affection”, also signals the giant computer maker’s desire to try to become an Apple Inc, the gold standard in the world of digital devices.

HP’s deal, which some feel is too expensive, is being seen as a declaration that it won’t fight shy of taking drastic action to remain relevant to consumers whose tastes in computing devices are changing radically.

Both HP and Palm have been on the wrong side of the smart phone explosion that has occurred over the past three years and been driven by companies like Apple and Research In Motion.

While it sells more personal computers than any other company in the world, HP does not even make the top 20 when it comes to smart phones, though it has a line of phones called iPAQ.

But the increasing belief that smart phones are about to outsell personal computers has compelled HP to take the bold and risky step of buying the struggling Palm, which had in 1992 helped originate the handheld computing market with its Palm Pilot PDAs.

But after Palm reshuffled itself repeatedly, other companies took control of the market. In recent years, as handheld computers morphed into smart phones, Palm struggled to keep up as consumers flocked to such devices as Apple’s iPhone and RIM’s BlackBerry. In the past year, phones that use Google’s Android operating software have added new competition.

Last June, Palm released a sleek touch-screen smart phone called the Pre and fresh operating software for it that won good reviews. But consumers were slow to embrace the Pre and its newer, smaller sibling, the Pixi. In the most recent quarter, Palm sold just 408,000 phones. In its last quarter, Apple sold 8.75 million iPhones.

Analysts have forecast that sales of smart phones, currently about equal to the annual sales of laptops, will surpass total PC sales by 2012. “The attractiveness of the smart phone market is compelling to us,” said Todd Bradley, executive vice-president for HP’s personal systems group who joined HP in 2005 after serving as Palm’s chief executive.

The deal also reflects HP’s eagerness to be known as more than just the world’s largest packager of Intel chips into cheap boxes — in other words, a computer maker.

That means a dream to cross the great divide. In the computing world, most manufacturers view computer as a commodity.

But not Apple, which often describes itself as a software company that makes its own hardware in order to control the environment on which its software runs. Apple serves a smaller but more lucrative market of customers who want something distinct from commodity software on commodity platforms.

Some analysts are sceptical of HP’s ability to make the cut but Palm had earlier shown willingness to tap into Apple’s talent pool. Palm’s chief executive, Jon Rubinstein, was one of the Apple executives responsible for the creation of the sleek iPod. Rubinstein is expected to remain with the company.

The deal gives HP access to Palm’s homegrown software that can run phones, as well as other types of devices like computer tablets. HP has historically worked with partners for such technology — a strategy that has resulted in plummeting smart phone sales and tardiness in introducing mobile products.

For Palm, HP’s acquisition represents a lifeline for a company that had recently put itself up for sale after consumers failed to respond to its new smart phones.

Analysts were quick to say that HP’s deep pockets and clout with retailers and carriers should breathe new life into Palm. Still, they also warned that melding a pair of flagging mobile phone businesses comes with obvious challenges.

“This is still a work in progress to say the least,” said Kevin Restivo, an analyst with the research firm IDC.

Bradley declined to say whether HP would continue to make smart phones or tablets that run Microsoft’s Windows software. By purchasing Palm, HP has signalled much more of a go-it-alone stance.

HP’s foray into the fiercely contested smart phone arena, while it may not immediately threaten Apple and Research In Motion, may increase pressure on Nokia, Motorola and other device manufacturers now battling to expand their market share.

“Nokia will be one of the most affected players,” said IDC analyst Francisco Jeronimo, “because of a wrong portfolio and lack of carrier support in the smart phone segment.”

Others, however, were more sceptical about HP’s ability to turn around Palm. “If HP wants to have a global role in the mobile space, spending $1.2 billion in Palm is not the way. Palm has no brand outside the US,” said an analyst.