Hewlett-Packard (HP) is expected to launch new iPAQ-series handheld devices, including PDAs, PNDs and 3G GPS PDAs, in the fourth quarter of 2007, according to sources at Taiwan-based handheld device makers.

HP has stepped up its contacts with Taiwan-based makers for different segments, with the sources indicating that Quanta Computer, Inventec Appliances and Foxconn International Holdings (FIH) are likely to land new orders from HP.

HP previously outsourced its iPAQ-series products to High Tech Computer (HTC), Quanta and LG Electronics. It added FIH to its supplier list in the second quarter of this year by outsourcing the production of iPAQ 510 PDA phones to the Hong Kong-listed company, the sources noted.

Since HTC has been focusing on developing own-brand products recently, HP is unlikely to continue to outsource the production of smartphones to HTC and instead, could switch its orders to Quanta, FIH or Inventec, said the sources.

HP may establish long-term contracts with certain suppliers for products designated for particular segments, stated the sources, noting that HP is to cooperate with Verizon to launch CDMA-enabled PDA phones in the US and focus on low-cost PDAs and PNDs in the China market.