Microsoft Corporation (NASDAQ:MSFT) has come up with a two digit code to unlock the revenues from the smart phone industry. J.R. deBart revelaed these two specifications of the company’s new device, namely the brand name and light price tag, on TheStreet.
“Microsoft Corporation (NASDAQ:MSFT) has unveiled a new cheaper smart phone costing about $135, as it eyes emerging and other low cost markets for growth. The new model is the first Lumia smart phone under Microsoft’s own brand name […],” reported deBart.
The idea of tapping into the low cost segment is not a new one. After getting crushed by Apple’s new phone in terms of sales, Samsung has also been pondering to do the same. The high volumes that this niche offers can help low margin smart phones rake in significant revenues. Microsoft Corporation (NASDAQ:MSFT) is hoping to catch just that break.
As a consumer when you think about buying a lower range smart phone, an issue that usually pops up is the quality and reliability of the product. Chinese manufacturers like Lenovo and Xiaomi who also operate in this segment cannot offer the customers the satisfaction that Microsoft Corporation (NASDAQ:MSFT) can, just by printing its name on the product. Of course, it also comes with a promise of reliability, and it is that very promise that convinces a customer to buy the company’s product.
As the lower priced phones get better, there is also a possibility that consumers who are currently buying the high end phones might also start joining the more economical band wagon. This might not be valid for those who own one of the most expensive smart phones in the world, but definitely the owners of the more popular iPhone and Samsung phones in the high range.
The new Microsoft Corporation (NASDAQ:MSFT) phone is also equipped with a good camera, which is one of the most often used features for many users.
“[…] The new Lumina would have a 5 inch screen and 5 megapixel front and rear cameras which would snap sharper selfies than the typical smart phones […],” said deBart.
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