14 DAY TRIAL // China isn't really the friendliest business climate for Microsoft, but the tech giant isn't yet ready to abandon this market and is still looking for ways to benefit from the growing appetite for technology in the country.
This time, a new report claims that Microsoft is planning to place more orders for phone parts in China, as it's looking into ways to cut costs and thus bring more affordable devices to the market.
Microsoft's efforts to launch cheaper phones and compete with Android in emerging markets are very likely to bring us two new Windows Phone models which could see the light of day at MWC 2015 next week.
Details are not yet available at this point, but sources have said that Microsoft is targeting very low prices, most likely below $100 (€73), to boost its mobile market share.
As a result, seeking lower production costs is a priority right now, and Digitimes writes that Microsoft is looking at China and its suppliers in its attempt to step away from Taiwan makers, whose prices are no longer supporting the company's efforts to bet more on the low-end business.
Truly Optoelectronics is likely to become a major supplier for Microsoft, the source says, but the company is already negotiating with several suppliers.
What about flagships?
Microsoft's investments in the mobile industry are mostly about low-end phones that could help it compete against Android and gain market share in countries such as India.
And yet, the company still lacks powerful flagships that would also help it expand in the high-end business and take on Samsung and Apple. Both Lumia 930 and 1520 are already aged products and are still the top choices for those looking for a powerful Windows Phone device.
Sources say that Microsoft is already working on flagships and successors to the two aforementioned models could launch in the fall of 2015, after Windows 10 gets the green light.
More details are expected to be provided next week at MWC 2015, including information about Windows 10 for phones and flagships running it.