With Lumia 535, Microsoft wants to break into the low-cost smartphone market

Microsoft launches first post-Nokia Lumia phone

The first Lumia smartphone under the Microsoft brand has been unveiled today featuring the 8.1 Windows Phone operating system and two five-megapixel cameras.

The dual SIM Lumia 535 with a 5in qHD display will enter the market later this month, selling for €110 (£86) before taxes and subsidies, Microsoft said.

Lumia 535 is part of Microsoft’s attempt to grab a bigger slice of the global low-cost smartphone market. Gadgets powered by the company's Windows Phone operating system have so far been lagging behind in the competition with more expensive models running Google’s Android operating software or Apple’s iPhones with the iOS system.

According to research firm Strategy Analytics, Windows Phone’s market share dropped from 3.8 per cent a year ago to only 2.7 per cent this year.

The software is mostly used on the Lumia phones, previously manufactured by Finnish technology firm Nokia. Microsoft acquired Nokia’s handset branch earlier this year for $7.2bn. The US tech giant said from the start it won’t keep the Nokia branding for the flagship Lumia product but may use it for some lower-end products for up to ten years.

Nokia continues as a networks, mapping and technology licensing company. It owns and manages the Nokia brand and only licenses it to Microsoft.

In the Lumia 535, Microsoft continues with Nokia’s earlier focus on image quality. The phone’s rear- and front-facing five-megapixel wide-angle camera can capture sharper images than is commonly available in other smartphones, Microsoft said.

Despite the low cost, Microsoft said the new phone will offer the same Microsoft services as high-end phones. That includes Skype video calls, Office apps and the virtual assistant Cortana.

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