Microsoft is cutting orders to supply chains for components used in entry-level and mid-range handsets due to a weak outlook for the second half of 2015, according to supply chain sources.

With the company expected to unveil Windows 10 Mobile-based mobile devices, including Lumia smartphones and Surface tablets at a product event to be held in New York on October 6, supply chains have been anticipating new component order growth.

Microsoft has recently revamped its strategy for handset business and will launch smartphones for the high-end, business and entry-level segments, said industry sources, adding that the moves nevertheless may not spur as much growth as anticipated.

Compal, Truly Optoelectronics and Foxconn Electronics are all supply chain makers associated with Microsoft that could be affected, the sources noted.

However, Microsoft reportedly is planning to develop two next-generation Surface 2-in-1 devices, one coming with a 12-inch display and the other a 13- to 14-inch screen, which are expected to spur new orders for makers.