Nokia planned to launch its first smartphone using Microsoft's Windows Phone 7 at the end of the year, according to Taiwan's Commercial Times, which did not identify a source.

The newspaper also said Taiwanese handset contract maker Compal Communications was the sole company to receive orders for Nokia's Window phones and would start shipment in the fourth quarter.

Two models of Window phones were on Nokia's plan -- one with a full touch screen and another sleek one with a keypad.

The world's largest handset maker announced in February it would use Microsoft's Windows phone software in all of its smartphones [ID:nLDE71A0DG], and said it would start volume shipments of these smartphones in 2012.