Talk is cheap: Microsoft reveals $27 mobile phone

Microsoft has revealed a budget Nokia phone with video and music capabilities, retailing at just $27.40.

The new Nokia 130 features a built-in video player, music player with up to 46 hours continuous playback on a single charge, a torch and FM radio. The screen is just 1.8 inches. 

The company is using the phone to make a play at emerging markets, releasing the phone in countries including China, Egypt, India, Indonesia, Kenya, Nigeria, Pakistan, the Philippines and Vietnam.

“The Nokia 130 is an ideal handset for first-time mobile phone buyers, or for people seeking a reliable backup phone to complement their existing smartphones,” said Microsoft.

Jo Harlow, corporate vice president for Phones at Microsoft, said: “As demand in the affordable mobile segment continues to grow, Microsoft remains committed to delivering market-leading mobile innovation at each and every price point.”

“It is estimated that at least 1 billion people in the world still do not have a mobile phone, while at the same time there is increasing demand for reliable backup phones in both mature and high-growth markets,” said Harlow.

Microsoft took over struggling phone maker Nokia in November last year, purchasing the company for $US7.2 billion (A$A7.7 billion).

The phone is expected to begin shipping in the third quarter of this year.