Microsoft plans low-cost handsets to compete with Android One

Microsoft, which plans to drop the Nokia brand from its future phones, is making plans to bring down the price point of upcoming feature phones and smartphones without compromising on quality of the phones. Microsoft is expected to launch a “First” series of feature phones priced under $40 (Rs. 2,500 approx).

Microsoft’s corporate VP for phones Jo Harlow said, “It is estimated that at least 1 billion people in the world still do not have a mobile phone, while at the same time there is increasing demand for reliable backup phones in both mature and high-growth markets.”

Microsoft has introduced its “First” range of smartphones with the launch of Nokia 130 in early August. The Nokia 130 will be available in India later this year at Rs. 1500 (approx). Microsoft also have plans to launch the Nokia 225 internet-enabled feature phone under Rs. 2,500 (approx).

The tech giant has also plans to bring down the price of future Windows Phone based smartphones. Currently, Windows Phones available in the market are priced higher than the Android smartphones with similar set of specifications. Apparently, Microsoft needs to improve on specs as well as bring down the price of devices in the Lumia range in order to compete with the Android powered smartphones.

With Firefox OS joining the sub 2K smartphone race in India, competition in the the entry level segment has intensified. With a mix of improved hardware and software, Firefox devices could give a good competition to Microsoft in this segment.

Most importantly, the launch of the Android One series of smartphones will further drive the low-cost Android smartphones segment. Microsoft should tap this market right away, or else it might lose even beofre it starts competing.

Source: ET