Microsoft will roll out its Lumia 535 smartphone later on this month with an affordable price in its key market.
The new model is the first Lumia smartphone not to feature the Nokia name since Microsoft purchased the Finnish company's handset business nine months ago. The company has released a few Lumia models since the deal, but those still carried the Nokia brand.
Equipped with its latest Windows Phone 8.1 operating system, the Lumia 535 and the Lumia 535 dial SIM will be priced at approximately 110 euros (about $137) before taxes and subsidies, Microsoft said in a statement.
The device will come with a wide-angle 5 megapixel front-facing camera and 5-inch qHD display screen. It comes with 5-megapixel front and rear cameras, which should allow for sharper selfies than other smartphones.
Microsoft is looking to expand its small market share around the world with cheaper devices. In order to do that though, it has to cut manufacturing costs. For example, camera and control buttons on a number of devices can be tapped on the screen instead of being physical buttons on the frame, according to the Associated Press.
"Innovation should be available to everyone, and we are doing this through the very best integrated Microsoft services free and out-of-the-box, a 5 MP wide-angle front-facing camera and a spacious 5 inch, qHD screen - all at an affordable price," said Jo Harlow, corporate vice president for phones at Microsoft, in a statement.
Despite the cheaper cost, Microsoft said the new devices will offer users the same Microsoft services that high-end smartphones do.
Services include Skype video calls, Office apps and the virtual assistant Cortana.
The Lumia 535 is expected to reach stores later on this month. The company hasn't said if it will release the phones in the U.S. however.
Smartphones running on Microsoft's Windows software only captured 2.7 percent of the global smartphone market in the second quarter, which is down from 3.8 percent during the same time in 2013, according to research firm Strategy Analytics.