In recent years, large-sized international handset brands have actively focused their promotion on smartphones. For example, Sony has been engaged in developing X2 since launching its first smartphone X1, which is produced by Taiwan-based High Tech Computer Corp. (HTC) and powered by Microsoft's Windows Mobile. The X2 will be produced by Hon Hai Group for sales in the fourth quarter of this year.

Institutional investors indicated that Hon Hai Group has gradually accumulated experience in rolling out smartphones through filling contract orders from globally leading brands, like Apple and Sony. To further expand its product portfolio, the group has also set up an R&D team dedicated to development of models based on Google's Android. So far, the group has successfully delivered Z1 and X10 Android-based models to its clients.

On the other hand, the group, with increasingly solid reputation in the line, is also expected to tap telecom companies' supply chains of smartphones. For example, Chunghwa Telecom Co., Taiwan's largest telecom service provider, is planning to outsource production of two Android phones for sale under own brand CHT in 2010, with Hon Hai Group and Pegatron Corp. most likely to win the order.

Noteworthy is that Hon Hai Group is believed to play a key role in the global supply chain of Android phones, because such smartphones are comparatively economical against Apple's iPhone and Windows Mobile-installed models, prompting brands to outsource production to their subcontractors with excellent production efficiency for lower costs.