Microsoft designs a line of low-cost smartphones.
On Monday Microsoft will announce a deal with Flextronics to manufacture a new line of low-cost cellphones based on the "Peabody" reference design (powered by Windows Mobile Edition) that would work with many networks and be sold by most cellular network operators in the world.
The Windows Mobile platform has gotten quite a bit better since it started years ago. Microsoft has concentrated on higher end models while dipping their toes in a new market. They seem apparently confident enough to go full blown with a low-cost / high volume design.
Microsoft and Flextronics are no stranger to each other. The software giant has launched another consumer device with the Taiwanese manufacturing contractor: The Xbox.