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$25 phone
In a bid to introduce itself to emerging markets, Microsoft will soon be launching a $25 phone for new consumers in Africa and Asia. The Nokia 130 will be available later this year in select markets like Egypt, India, China, Kenya, Nigeria, Pakistan and the Philippines. The technology titan describes the low-priced phone as an attractive choice for people looking to purchase their first mobile phones.

More than an estimated 1 billion people worldwide still lack mobile phones, as mainstream options that cater to the already industrialized world are too costly. Simultaneously, there is a growing demand in both high-growth and mature markets for dependable backup phones. Microsoft touts the Nokia 130 as perfect for both scenarios, calling it “an ideal handset for first-time mobile phone buyers, or for people seeking a reliable backup phone to complement their existing smartphones.”

“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,” said Microsoft’s corporate vice president for phones, Jo Harlow.

According to the company, an annual 300 million phones are sold in the under-$35 sector. Shipments of low-end smartphones are projected to reach 1.1 billion in just four years at an annual growth rate of over 19 percent.

The Nokia 130 is a basic phone with limited features and no internet capability, sacrifices that were required in order to achieve its low price tag of $25. However, it does include several more advanced features like music and video playback, content sharing through Bluetooth, SD card, or USB and a flashlight. The music player will provide up to 46 hours of playback on just a single charge and the battery can last for more than five weeks on standby.

“With handsets like the Nokia 130, we see tremendous potential to deliver the experience of a ‘mobile-first’ world to people seeking their first device, and we continue to invest in ultra-affordable devices that will introduce people to a ‘cloud-first’ world,” said Harlow.

Though the cheap handset business is uncharted waters for Microsoft, Nokia is a veteran of this market. Microsoft acquired the latter’s handset business previously this year and hopes that reaching consumers of developing nations will build a new audience base.

Nokia once reigned mighty in the mobile business, but its market share has deteriorated in recent years. However, the recognition and credibility that is still associated with the Nokia brand will help attract consumers to Microsoft’s new phone, and the easily affordable $25 phone will introduce new consumers to Microsoft’s other services, like Bing and OneDrive. Eventually, when these new consumers decide to upgrade beyond basic phones, they may be inclined to choose a Microsoft smartphone.

“Microsoft doesn’t have any other project that can reach these consumers,” said Harlow. “These consumers will create a Microsoft account and become part of the Microsoft ecosystem.”

Annie Jung

Sources: Market Watch, PC Mag, CNBC, Recode
Photo: PCMag