AT&T Inc. began offering the 3125 Windows Mobile model for $49.99. Another phone will go on sale for less than $100 next month, Microsoft said, declining to name the company selling the device. Microsoft, world’s largest software maker, competes with Apple and Symbian Ltd in developing phones that handle e-mail and surf the Internet. More consumers are buying such devices, so-called smart phones, which had been the domain of corporate customers. As competition grows, Microsoft is cutting prices to appeal to a broader range of shoppers.
Microsoft designs the phones’ operating system, while its partners build the hardware and sell the devices. The software is a smaller version of Microsoft’s Windows system, which runs most personal computers. Apple’s iPhone, which debuted in June, is a $399 device with a touch screen. The phone combines Apple’s iPod media player with Internet functions.

Intuitive to use
Microsoft is working with manufacturers to make its phones easier and more intuitive to use, said General Manager Scott Horn. The products will also become more affordable, he added. “In the next few weeks, you are going to see prices really drop on a lot of our phones,” Mr Horn said. Microsoft Chief Executive Officer Steve Ballmer plans to focus on ways to make it easier for large companies to provide phones to employees.
To pursue that goal, Microsoft will introduce System Center Mobile Device Manager 2008, a programme that lets companies manage phones the same way they handle networks of PCs. The software will be available in the first half of next year, Mr Horn said. To make it easier, Microsoft formed a partnership with Enterprise Mobile Inc., a Boston-based mobile-phone consulting firm.