Cheap smartphones and their tremendous market to be Microsoft’s new target

The size of the affordable device marketplace is estimated to be $50 billion and the company wants in.

American software giant, Microsoft, is looking to rejuvenate the former glory of Nokia by targeting the market for cheap smartphones, in order to be able to access the affordable handset marketplace which is estimated to be worth approximately $50 billion.

The company just recently announced that it would be removing Nokia’s name from the devices.

Before Nokia was acquired by Microsoft, it had watched its market share plummet as powerful competitors such as Apple and Samsung carved out their own considerable pieces of the pie. The primary struggle was in being able to keep up with the rapidly evolving expectations of consumers. Now, it looks as though the new owner of the handset business will be looking to define itself within the affordable cheap smartphone sector.

This could be because cheap smartphones are becoming increasingly desirable by consumers worldwide.

Microsoft first partnered with Nokia in 2011 for the launch of the handset maker’s Lumia line of devices, as those mobile phones were based on the Windows Phone operating system. That platform has become the fastest growing ecosystem within the marketplace for smartphones, according to the IDC research firm. By the last quarter of 2013, it had become the third largest mobile operating - cheap smartphones


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According to a statement from Microsoft, “With the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $50 billion annual opportunity, delivering the first mobile experience to the next billion people while introducing Microsoft services to new customers around the world.”

Low cost handsets and cheap smartphones have become a very important part of the mobile marketplace throughout many emerging markets, particularly in Asia and in Africa. Asian handset makers such as Huawei, Micromax, ZTE, and Karbonn have been credited with driving growth in those regions. Clearly, Microsoft has not failed to take notice of this opportunity in these regions where mobile devices are achieving exceptional penetration among the populations. It is keen to ensure that it does not miss out on what those regions have to offer in terms of device sales – particularly gadgets based on its operating system.

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