Microsoft hopes to cut Windows Phone 7 prices in half

One of the barriers surrounding smartphones is the price. Generally, purchasing a smartphone compared to a regular cell phone is much more expensive. However, those prices have been going down for the most part. Now Microsoft's head of its Windows Phone division has said that it expects the price to make a phone based on its mobile operating system to be about half of what it takes to make one today.

In a new Bloomberg article, Windows Phone head Andy Lees said the lower prices will come due to competition from smartphone parts makers such as processor maker Qualcomm. In 2010, it took $400 to make a Windows Phone 7-based smartphone. Now Lees says it takes about $220 to make such a phone. In 2012, he said, "We are supporting componentry that will allow us to go below $200." Qualcomm will be the exclusive maker of processors for Windows Phone 7 devices, according to Lees.

So far HTC and Samsung have officially announced plans to release new Windows Phone 7 devices based on the new "Mango" update to the operating system. All eyes will be on Nokia next week as it holds its Nokia World event in London. It's highly expected that Nokia will officiially reveal at least one, if not more, of its Windows Phone 7 devices which should start going on sale by the end of 2011. There have been lots of leaks about Nokia's upcoming phones but so far neither Nokia nor Microsoft has confirmed anything regarding these leaks.

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