Bloomberg: Unnamed sources say that Microsoft will not allow HTC to manufacture a Windows 8 tablet this year because Microsoft believes the company doesn't have enough experience making tablets and doesn't sell enough devices. Taiwan-based HTC manufactured the first Google-branded smartphone and sells several Android-based devices. In the past year, HTC's stock has fallen 68 percent. The company recently lowered its second quarter sales forecast by 13 percent, driving its share price even lower.
A Microsoft spokesman declined to comment on the specifics of the company's relationship with HTC, saying only that HTC is a strong Microsoft partner now and in the future.