Microsoft Corporation (NASDAQ:MSFT) is moving the current head of the Windows Phone division Andy Lees to another role within the company. Microsoft corporate VP Terry Myerson will fill in for Lees. Currently Myerson leads the engineering division of Microsoft Windows Phone and now he will be responsible for business development, marketing, etc.

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]