Microsoft makes bet to win phone share

SEATTLE—Microsoft Corp’s phone chief hates to call the new Nokia Lumia 521 cheap, but the lower-priced smartphone launching in the United States is the company’s boldest move yet to win mass market share from leaders Apple Inc and Samsung Electronics.

The world’s largest software company has so far focused on putting its Windows Phone software into expensive, high-end devices—chiefly from Nokia and HTC Corp.

But the new model will go on sale at Walmart later this month at an unsubsidized price under $150, relatively cheap for a new phone running up-to-date software without a long-term contract.

“There is an opportunity for us to offer a very high quality device in the mainstream,” said Terry Myerson, head of the Windows Phone unit, at Microsoft’s campus near Seattle last week. “That’s where we’ve made progress in the last couple of months and it’s a strategy we’ll continue to explore in the United States.”

The Nokia Lumia 521 went on sale on the Home Shopping Network (HSN) last week, where it has already sold out. The 4G phone, sold overseas as the Nokia 520, is essentially a mid-range phone with some high-end features, such as fourinch touch screen, five megapixel camera and highdefinition video display.

The early popularity of the Lumia 521 on HSN is a minor boost for Microsoft, whose mobile plans have stuttered and stumbled since Apple’s iPhone destroyed its early dominance in the smartphone market in 2007.

After completely redesigning its software, Microsoft-powered phones now have 3.2 percent of the US smartphone market, compared to 39 percent for Apple and 52 percent for Google Inc’s Android system, according to comScore.

Nokia, which now only makes smartphones running Windows, sold 5.6 million of its Lumia handsets in the first quarter, up 27 percent from the previous quarter, although that is still dwarfed by 37 million iPhone sales.