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Microsoft Ditches Nokia Name With $136 Smartphone

Microsoft unveiled its low-end Lumia 535 smartphone on Tuesday, the first handset to ditch the Nokia name after acquiring the Finnish telecoms company's devices unit. The release of the 110 euro ($136) smartphone continues Microsoft's push into the emerging markets with analysts suggesting the scrapping of the Nokia brand will help the American technology firm gain market share to sell its software. "It is clearly about dominating the entry level smartphone market as opposed to competing on the higher end with Apple," Enrique Velasco-Castillo, analyst at Analysys Mason, told CNBC by phone. "It is about trying to clearly make new devices reach a large audience particularly in developing markets. With that reach Microsoft will expand its ecosystem to provide apps and services to those customers in the growth markets." Microsoft bought Nokia's Devices and Services business in April for 5.44 billion euros ($6.75 billion) to bolster the company's smartphone offering. Nokia kept its network services unit. The Microsoft Lumia 535 comes with a five inch screen and 5 megapixel camera.

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--- Arjun Kharpal, CNBC