Microsoft envisions $100 Windows Phones

Windows Phone 7 logoHere's another way Microsoft hopes it can compete in the hyper competitive smartphone race - price.

While today's smartphones are certainly much more affordable than they were just a few years ago, there's still a huge segment of the population that walk into a mobile phone store and want to walk out with a new phone, without a big immediate impact on their wallet.

So a $250 Verizon Thunderbolt is out of the question. So too are the myriad smartphones priced at what has become the industry standard of $200. But bring that price tag down to $99.99, and then you're talking about a whole new audience.

Microsoft thinks it can get that audience with Windows Phone 7.

As quoted by the company's official press site, Windows Phone division president Andrew Lees said at a recent event, "If you look even at the price of smartphones, a year ago all smartphones cost over $400 when they left their hardware manufacturer. Today, they're down to about $200, and next year, a smartphone that can run something like Windows Phone 7 will actually be down to $100 to $150."

Interestingly, the software giant has previously said it hopes to offer Windows Phone apps that are more expensive than the standard $1-$2 fare found on the iTunes App Store and Android Market.

So perhaps Microsoft wants to pull in consumers with low hardware prices and then lure them into buying more expensive apps - a higher-margin sector where it can rake in more profit.

It also helps that Microsoft's partnership with Nokia will kick in at the end of this year. Nokia has managed to reach huge economies of scale, allowing it to manufacture devices at a more cost-effective rate than most other companies.

And that is key if Microsoft plans to emerge in areas where Nokia still has a dominant presence - in under-developed countries where people use their phones as their only means of electronic communication. If it's possible to overlay Windows Phone 7 in those already-dominated-by-Nokia parts of the world, it could lead to cheaper costs to other markets as well.

Regardless, offering a more affordable smartphone solution is certainly a keen strategy to compete against Android and iOS phones, which may not be so quick to drop in price otherwise, so this may work.

Source: TG Daily

Tags: Microsoft, mobile phones, Windows Phone 7

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
You can use a security key instead of having a code sent to your phone
 
Adobe says that the AI can now achieve the intended result in seconds
 
A new security protocol replacing the aging WPA2
 
Download and install at your own risk, of course
 
More iPhone parts likely to be produced by Samsung
 
Starting on Friday, video views on YouTube will start to be counted by the Official Charts Company
 
LG has already announced two new V-series members in 2018
 
The method is blocked and the hack doesn’t work, it adds
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
1234567
891011121314
15161718192021
22232425262728
293031    




Poll

Do you use microSD card with your phone?
or leave your own version in comments (10)