Nokia may release new Windows Phone 7.5 mobile phones aimed at the 'underdeveloped' entry-level segment.

The Finnish company recently unveiled two smartphones, the flagship Lumia 920 device and the Lumia 820, sporting the latest Microsoft operating system, Windows Phone 8.

However, costs associated with developing phones which utilise this software are too high for the lower-end market.

The latest operating system requires handsets to have Near Field Communication (NFC) functionality, which allows owners to use their mobile phone as an e-wallet. This technology is expensive to produce so its removal from handsets will enable Nokia to pass on savings to customers.

Phones supporting the newer Windows software also require a dual-core processor, which can add a significant amount to the price.

Utilising the older Windows Phone 7.5 system will enable the manufacturer to price handsets between entry and mid-levels. According to German website, the Lumia 920 will cost €600 (£480) and the lower-spec model, the Lumia 820, may set customers back €450.

Posted by Peter Robinson

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