Microsoft to Help Halve Phone Costs Next Year in ‘Volume’ Drive

Microsoft Corp. expects production costs of handsets using Windows Phone 7 software next year to drop by more than half from when the platform was introduced.

Cooperation with parts makers including Qualcomm Inc. will allow phones using Redmond, Washington-based Microsoft’s mobile operating system to be produced for less than $200, compared with $400 when the software was released last year, Andy Lees, head of the Windows Phone division, said in an interview in Hong Kong today. The actual retail price will be determined by operators, he said.