MOUNTAIN VIEW (dpa-AFX) - Software giant Microsoft Corp. (MSFT) has initially denied its long time partner Taiwanese smartphone manufacturer HTC Corp. the right to built products, particularly tablets, based on its new Windows 8 operating system, citing its inexperience in the field and low anticipated sales volumes, according to a Bloomberg report.
HTC issued a statement without touching on the current issue, 'HTC has sold more than 40 million Windows Phones over the last ten years and we are committed to future versions of Microsoft's Windows Phone platform more than ever.'
Redmond, Washington-based Microsoft reportedly has not included HTC in the list of firms that were given early access to Windows 8 builds, though HTC is said to have readied its engineers to develop a Windows 8 device with a customized home screen. Manufacturers are allowed to create such home screens with Google, Inc.'s (GOOG) Android.
Microsoft's move could also have been influenced by HTC's decision to lower its second-quarter revenue outlook by 13 percent earlier in the day. The denial by Microsoft will cut off another source of revenue for HTC.
The world's largest software maker has also looked to work with vendors having greater sales volume and more tablet experience for the first round of devices.
Though HTC is not included in the initial list of manufacturers for 2012, it could be included in the next list for 2013. HTC has been keen to built a tablet on the new operating system, considering its limited success with Android tablets. It could now look to ramp up its Android-based tablets.
Microsoft is reportedly supporting ARM-based devices first to ensure quality, and for a product launch in time for the holiday shopping season. The OS version made for running on chips with technology from ARM Holdings Plc is called Windows RT.
It will also be supporting tablets and computers made using chips based on Intel Corp.'s (INTC) technology. The devices from companies like Samsung Electronics Co. Ltd. (SSNLF.PK, SSNNF.PK), Toshiba Corp. (TOSBF.PK) and Asustek Computer, Inc., running the new software, are expected to be out later this year.
Windows 8 will be the first version of Widows to run on both tablets and PCs. With customer preference for tablets eating away into PC sales, Windows 8 is being touted as Microsoft's real attempt at taking on Apple Inc.'s (AAPL) iPad. The arrival of Apple iPad and other tablet PCs has apparently hurt sales of netbooks as well as notebooks.
The revenue from Microsoft's windows and windows live division have fallen year-over-year for four of the last five consecutive quarters, reflecting weak PC trends. The new software is also expected to give a boost to sluggish sales in the PC market.
Thought the software giant has not committed a date for the release of Windows 8 operating system, it may only be a couple of months away as Microsoft has vowed to have a new version release once in three years. Windows 7 was launched in October 2009.
Windows 8 features a new Metro-style interface that is designed for touchscreen input. Other prominent features of the Windows 8 Release Preview include Bing Travel, News and Sports apps, as well as Gaming and Music Xbox apps that integrate with Zune pass. Also featured are improvements to the Mail, Photos and People apps.
HTC closed Wednesday's regular trading session at $29.35, up $0.85 or 2.96% on a volume of 46.86 million shares.
Copyright RTT News/dpa-AFX
© 2012 AFX News
