SAN FRANCISCO (MarketWatch) — Microsoft is rolling out a $25 phone for consumers in Asia and Africa in a clear bid to expand its presence in emerging markets.

Microsoft MSFT, -1.24% on Monday introduced the Nokia 130, which is priced at 19 euros and billed by Microsoft as “an ideal handset for first-time mobile phone buyers, or for people seeking a reliable backup phone to complement their existing smartphones,” the company said in its announcement.

The technology giant said the phone is expected to become available in the third quarter of this year in select markets, including China, Egypt, India, Indonesia, Kenya, Nigeria, Pakistan, the Philippines and Vietnam.

“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,” Jo Harlow, Microsoft vice president for phones, said in a statement.

“It is estimated that at least 1 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.”

The company said 300 million phones priced below $35 are sold every year.

IDC analyst Ramon Llamas said the move is not surprising given Nokia’s strategy of “courting emerging market users with inexpensive devices.”

“For Microsoft, this is new territory,” he told MarketWatch. “But they are not going into this blind. Nokia has a lot of experience in this area.”

Microsoft completed its acquisition of Nokia’s handset business earlier this year.

However, Llamas also noted that the Nokia 130 runs on Nokia’s Series 30 operating system, not Windows Phone, and it’s not clear how the move could meaningfully boost Microsoft’s overall position in the mobile market, in which having a robust operating system user base is also key.

Microsoft faces stiff competition in the mobile market from Apple AAPL, -3.17% and devices using Google’s GOOGL, -2.41% Android operating system

“What is the path from Nokia 130 to a Windows phone? That is not clear,” Llamas added.

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