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While Microsoft aims to expand Windows Phone to cheaper devices, supposedly in the second quarter with the Tango update, even the cheapest Windows Phone will most probably still be well above the price point allowed by Smarterphone, $75. Both operating systems could definitely coexist in Nokia’s portfolio.
However, it’s unclear how Nokia’s low-end S40 is supposed to fit in alongside this purchase, as its Asha line of phones, which were introduced at last October’s Nokia World alongside the Lumia Windows Phones, are aimed at the “next billion”. Whether Nokia will replace S40 with Smarterphone, or just bought it for the talent, remains to be seen.