Microsoft, having closed Nokia's factories and dismissed Nokia R&D staffs, is unlikely to invest much in own-brand Windows 10 smartphones and instead may partner with vendors to launch Windows 10 smartphones, with Taiwan-based supply chain makers expected to receive ODM orders from these vendors, according to sources with these makers.

Microsoft is expected to showcase Windows 10 flagship smartphone models, Lumia 950 and Lumia 950XL, at IFA 2015 in Berlin, Germany, during September 4-9, the sources said. This signals that Microsoft will focus on marketing high-end own-brand Windows 10 smartphones and will likely seek cooperation with Taiwan- and China-based vendors and regional vendors in other countries to launch entry-level and mid-range Windows 10 smartphones in China, India, Southeast Asia, Latin America and other emerging markets, the sources indicated.

In order to motivate vendors to launch entry-level and mid-range Windows 10 smartphones, Microsoft is expected to provide R&D and marketing subsidies, and to persuade Taiwan-based MediaTek and China-based smartphone IC designers, such as Spreadtrum Communications, to develop common chip solutions, the sources said, adding it may even accept China-based white-box vendors.