This month Dopod launched T8388, a high-end TD-SCDMA phone, which features a 3.6-inch screen and 5-mega-pixel camera.

The smart-phone vendor will also sell phones costing less than 3,000 yuan (US$441) each, compared with its mainstream models that cost above 5,000 yuan each.

This year Dopod will focus on phones for Google's Android system. The company said half of all new models will be for Android.

"The open platform and applications (of Android phones) will help us win in the 3G market," Hsu said. "Three carriers have provided a subsidy for 3G phones and that will make Dopod handsets more affordable."