"Watching TV over the Internet is not the most urgent thing for them," Wu said.

Besides Skytone, Taiwanese vendors such as Asus Inc., Acer Inc., and MSI have either confirmed or are rumored to be working on netbooks or smartphones running Android, an ARM processor, or both.

Hewlett-Packard Co. has confirmed its interest in Android netbooks, while Dell Inc. is said to be interested in Android smartphones.

Though Skytone is likely to be overtaken by the bigger brands when they enter, Wu welcomes them anyway, saying it will grow the market and benefit consumers.

"We are a for-profit company trying to make a $100 device," he said. "The more vendors that come out, then the more affordable everyone's netbooks will get."