Microsoft Partners with Qualcomm to Develop Cheaper Smartphones

Microsoft Corp has partnered with Qualcomm in developing low-cost smartphones to attract new customers from less-developed countries and increase market share.

According to market research firm International Data Corp. (IDC), out of the total smartphones shipped last year -- which is roughly one billion, only 3.3 percent ran Windows. The remaining 96 percent, on the other hand, accounted for smartphones running on Google's Android OS and Apple's iOS.

That clearly shows that Microsoft, which once dominated the computer market, has failed to get more handset manufacturers to use its Windows OS on their products, therefore, failing to beat the two tech giants.

However, under Satya Nadella, its newly-appointed chief executive officer, the software giant will start working on mobile software and developing low-cost phones for the emerging markets.

"Microsoft can be more healthy by widening our ecosystem," said Joe Belfiore, Microsoft's vice president and manager for Windows Phone, in an interview with Bloomberg at the 2014 Mobile World Congress held in Barcelona. "We care a ton about emerging markets."

"Our new CEO has said mobile first," Belfiore added. "That plays naturally to our strategy of reaching more people."

In able to do so, Microsoft said it is now building its market share for the Windows OS from the start. The company, through its partnership with hardware manufacturers and Qualcomm Inc, is set to develop cheap, Internet-ready phones that can be used in less-developed countries.

Microsoft will work with Qualcomm in creating the basic core of the phone, which are its processors and wireless chips. After that, developers and handset manufacturers can start building their own design of devices for Windows smartphones.

The software company will also be updating its Windows 8.1 software and Windows Phone software for its low-cost smartphones, Belfiore said.

The company also said that a number of manufacturers, including ZTE, Lenovo, and LG Electronics are planning to add Windows Phone devices on their lineup.