Taiwan-based handset makers have shifted R&D investment to Android for 2-3 years and now most of them are unwilling to invest in Windows Phone 7 (WP7) because Android has a large existing global market share and development potential, and is an open platform whereas WP7 demands a license fee, according to the makers.

The makers include Foxconn, Compal Communications, Pegatron Technology, Qisda, Inventec, Inventec Appliances and Arima Communications. Few have profited from the production of Windows Mobile smartphones. As Microsoft is unlikely to reduce WP7 licensing rates, maybe only 2-3 of Taiwan's handset makers will engage in WP7, the sources pointed out.

HTC may take up as much as 70-80% of the global WP7 handset market, followed by Samsung Electronics and LG Electronics, the sources estimated.