Microsoft Corp. to push into mobile software, develops cheaper phones for emerging markets

Microsoft Corp. said that it will hasten a push into mobile software field under the leadership of its new Chief Executive Officer Satya Nadella. The company revealed it is working in collaboration with hardware manufacturers and Qualcomm Inc. in order to develop cheaper handsets that are to be offered on emerging markets.

Yesterday, Microsoft Corp. announced that it is joining forces with Qualcomm on a low-cost handset design, which can be used by phone manufacturers and developers in order to build their own devices. The company also said that it is working in partnership with Lenovo Group Ltd to make Windows-based smartphones. Nokia Oyj, whose mobile-phone business will be acquired by Microsoft soon, is also expected to reveal new low-cost phones today.

A basic core of a phone with the necessary processors and wireless chips is being designed by Microsoft and Qualcomm. This provides developers with the opportunity to use them as they work on Windows phones for emerging markets. Joe Belfiore – Vice President of Microsoft – revealed that the company is planning a Windows 8.1 software update as well as a Windows Phone software release in the spring of 2014.

Currently, Microsoft Corp. is trying to follow the steps of Google Inc. and Apple Inc. and has been putting its efforts into building a market share for its Windows operating system. The users in less-developed countries will be provided with an opportunity to use the Internet for the first time thanks to cheaper smartphone units. The market is believed to be quite fast-growing, which is the reason why it is considered as very attractive by Microsofts competitors such as Google Inc.

Joe Belfiore said in an interview at the Mobile World Congress, which was cited by Bloomberg: “Microsoft can be more healthy by widening our ecosystem. We care a ton about emerging markets.”

The efforts invested by Microsoft into expanding the companys reach of its mobile ecosystems come at a time when it is preparing to finalize the 7.2-billion-dollar deal with Nokia Oyj over its handset business and as Satya Nadella takes the position of Chief Executive Officer.

Belfiore said for Bloomberg: “Our new CEO has said mobile first. That plays naturally to our strategy of reaching more people.”

Microsoft Corp.’s shares rose by 0.61% on Friday to settle the session at $37.98, marking a one-year change of 36.82%. According to CNN Money, the 28 analysts offering 12-month price forecasts for Microsoft Corp. have a median target of $39.00, with a high estimate of $47.00 and a low estimate of $29.00. The median estimate represents a +2.69% increase from the last close.