The Redmond-based company introduced the Nokia 130, priced at 19 euros, or $25, that it says will be ideal for people buying their first phone or seeking a reliable backup to their existing smartphone. The phone will come with a 1.8-inch color display and will have a battery life of 36 days on standby.
The phone will be launched in the third quarter of this year in select countries, including China, Egypt, India, Indonesia, Kenya, Nigeria, Pakistan, the Philippines and Vietnam.
"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," said Jo Harlow, Microsoft's vice president for phones.
"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."
The phone, despite being very basic, has a video player, music player with 46 hours of music playback, a flashlight, FM radio and USB charging.
The phone will come in single- or dual-SIM variants and will have 32 GB expandable microSD memory and will be Bluetooth enabled.
"With handsets like the Nokia 130, we see tremendous potential to deliver the experience of a 'mobile-first' world to people seeking their first device, and we continue to invest in ultra-affordable devices that will introduce people to a 'cloud-first' world," said Harlow.