Microsoft Expects Windows Phone 7 Manufacturing Costs To Drop More Than Half Next Year

Microsoft Corporation (NASDAQ:MSFT) expects the production costs of handsets that uses Windows Phone 7 software to drop by over half next year. Qualcomm Inc. will allow phones that run on the Windows Phone 7 operating system to be produced for under $200. This is a substantial drop from the $400 manufacturing cost from when the mobile operating system was introduced last year. This announcement was made by Windows Phone head Andy Lees. Microsoft works exclusively with Qualcomm for chip development. [BusinessWeek]

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