Microsoft is staying committed to the low-end non-smartphone market with the launch of the new $25 Nokia 130 handset.
Running Nokia OS, the device has no internet connection and is primarily aimed at consumers keen on listening to music and watching videos on their phones.
The Nokia 130 is equiped with a built-in video player, MP3 player and FM radio.
Movies can be played from an SD card for up to 16 hours while the MP3 player will play music for up to 46 hours.
Users can share content via the SD card, a USB or using Bluetooth with SLAM technology.
The phone comes with a 1.8" (4.6cm) colour screen.
The Nokia 130 will be sold in China, the Philippines, Indonesia, Vietnam, India, Pakistan, Egypt, Kenya and Nigeria.
There are no immediate plans to release the phone to the UK market.
When contacted by Mobile, Jo Harlow said: 'As demand in the affordable mobile segment continues to grow, Microsoft remains committed to delivering market-leading mobile innovation at each and every price point.'
It is estimated that at least one billion people in the world still do not have a mobile phone, while at the same time there is increasing demand for reliable backup phones in both mature and high-growth markets, she added.
'With handsets like the Nokia 130, we see tremendous potential to deliver the experience of a 'mobile-first' world to people seeking their first device, and we continue to invest in ultra-affordable devices that will introduce people to a 'cloud-first' world through Microsoft services such as Bing, Outlook.com, and OneDrive.'