What Microsoft plans on doing to become an important presence on the phone market has always been something debated. Now, it seems that the famous company has revealed its plans. Microsoft plans on releasing some really affordable phones.
So, the famous company is said to be committed to produce really cheap phones. The tech giant has announced the release of a low cost mobile phone, which lacks data connection. This device, Nokia 130, is going to be available on the market for only 19 euros. This release has been revealed by Microsoft only a month after the company’s plans have been reportedly leaked.
A leaked memo indicated that the tech giant is actually willing to kill its low cost phones with the purpose to focus more on its high end products, including here Windows Phones. These are without a doubt more expensive products. However, it seems that this leaked memo contained false information, as Microsoft is actually releasing a cheap phone.
And it seems that the famous company thinks that this is an amazing deal they can make. “This is a massive market segment, and there are not a lot of players in this segment for the reason that scale is really important,” the head of Microsoft’s phones business, Jo Harlow, said according to BBC. “We have the distribution and supply chain scale to compete effectively in this market,” he added.
“This is a space where smartphones today don’t reach, so there is still very strong benefits to our business,” Jo Harlow also claimed. Microsoft will not only make profits from the low cost of the device, which will draw more customers, but the famous company will actually benefit of the reduction of marketing and manufacturing costs.
The new device might turn out being a great success for Microsoft. The popular company plans on making its new phone available in many locations around the world. This device will be sold in China, India, Kenya, but also Indonesia, Nigeria, the Philippines and Vietnam. People from Egypt and Pakistan will also be able to purchase this new phone. However, Microsoft revealed nothing about its potential intention of introducing this product on the European or American market.