Microsoft launches $25 phone

Microsoft Devices Group unveiled the Nokia 130, a mobile phone that costs $25 without a touch screen, Wi-Fi connection or camera, tech portal pcworld.com reported on Monday.

The focus of Microsoft's strategy is on building both high-end and low-cost smartphones running the Windows Phone operating system, but there is also a need for "ultra-affordable" cell phones, the news portal cited the US tech giant as saying on Monday.

The phone has an integrated MP3 player and FM radio, Yahoo! News reported, and it supports video playback. It also supports SD cards and holds up to 32GB of songs and video clips, Yahoo! said.