[caption id="attachment_70110" align="alignleft" width="200" caption="The HP TouchPad was the company’s primary showpiece during ISTE's ed-tech trade show in late June."][/caption]

In a dramatic reshuffling, Hewlett-Packard Co. is discontinuing its tablet computer and smart-phone products and might sell or spin off its PC division.

The surprise move comes a year after HP purchased mobile device maker Palm Inc. for $1.2 billion—and just seven weeks after HP touted its new TouchPad tablet as a competitor to Apple’s iPad at the nation’s largest ed-tech industry trade show.

HP’s Aug. 18 announcement is one of...

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