Microsoft is releasing a new Nokia phone, the Nokia 130, an ultracheap device that's priced at only around $25.
There's a catch obviously to such a low price. The handset doesn't have an Internet connection, something that may be important to many users looking for a budget handset.
The Nokia 130 is geared toward emerging markets, and offers basic phone functionality and media playback. It also includes an FM radio and can even play movies from an SD card. It boasts 13 hours of talk time, 46 hours of audio playback time and 16 hours of movie playback time.
"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," said Jo Harlow, mobile phones chief at Microsoft. "Microsoft doesn't have any other project that can reach these consumers."
While it has been noted that Microsoft has been aiming to build up its mobile operating system, Windows Phone, it realizes that it cannot neglect emerging markets. This device will be released in China, Egypt, India, Indonesia, Kenya, Nigeria, Pakistan, the Philippines and Vietnam during the third quarter.
Microsoft is not the only company that has been developing devices for emerging markets. Google is rumored to be planning its Android One smartphone that brings high-end specifications to a device that costs less than $100. Samsung will also continue to build low-cost devices, with plans for three devices that cost under $165 to be released in the near future.
"As demand in the affordable mobile segment continues to grow, Microsoft remains committed to delivering market-leading mobile innovation at each and every price point," continued Jo Harlow. "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 also plans on releasing more basic phones, some of which will include Internet connections. These will allow users to connect their devices to a Microsoft account and become part of Microsoft's ecosystem.
This news comes amidst speculation that Microsoft is planning on phasing out the Nokia division in the near future, instead releasing devices under the Microsoft name. Nokia is also rumored to be working on devices powered by Android.
