Some Taiwan-based ODM/OEM handset makers have stepped up their development of Windows Phone 7-enabled phones eyeing possible orders from telecom carriers and Nokia.

While most brand-name handset vendors have rolled out models running on the Android platform, local makers indicated that WP7-based smartphones still have potential in emerging markets in Central and South America and Southeast Asia as some carriers in the regions have not introduced iPhones or major Android-based models into their respective markets.

Nokia may cooperate with Microsoft to roll one, two or three WP7-enabled models before releasing orders for WP7 phones to ODM/OEMs, said the sources, noting that Nokia is most likely to release WP7 smartphone orders in 2012 at the earliest.

Local handset makers have also noticed that Microsoft does not have intentions to increase substantially the number of OEM partners for WP7 phones at the moment which will make it difficult for Taiwan makers to secure licenses from Microsoft.