China-based handset vendors and ODMs are still reluctant to launch Windows Phone (WP)-based smartphones in 2014 despite Microsoft's efforts to promote its WP platform without charging license fees for mobile devices with a below 9-inch display and to bundle sales with Qualcomm's QRD (Qualcomm reference design) platforms, according to industry sources.

　　In addition to removing license fees, Microsoft has also opened more middleware and software to enable handset vendors and ODMs to roll out smartphones with differentiated features, the sources noted.

　　Microsoft has also teamed up with Qualcomm, bundling its WP platform with Qualcomm's handset solutions, including the popular Snapdragon 200- and 400-series family products, so as to ramp up the market share of WP phones in China, the sources added.

　　The QRDs based on the Snapdragon 200- and 400-series chips have entered design-in processes of a number of China's brand handset vendors and ODMs, according to Qualcomm.

　　The first wave of WP-enabled smartphones built on QRD is expected to hit the market in the second half of 2014, the sources revealed.

　　Even so, the sources indicated that most of China's handset vendors are still hesitant to move ahead with the planned launch of WP phones due to amount of time needed and high production costs adopting the less-developed ecosystem of the WP phone.

　　The use of peripheral chips and some key components for product differentiation has also built up production costs, offsetting the benefits of free licensing from Microsoft, said the sources.

　　It will remain a major task for Microsoft to see a significant up-tick of the market share of WP-based smartphones in China in the second half of 2014, commented the sources.