Microsoft is going all out on the budget market for Windows Phone, launching the Lumia 435 and Lumia 532, two new Windows Phone 8.1 smartphones with low-end prices.

The Lumia 435 is the real star of the show as Microsoft's cheapest Windows Phone, costing $79. The Lumia 532 will cost $10 extra, at $89, and is still an excellent pickup for budget markets. Microsoft has packed a WVGA (800 x 480) display, 1.2GHz dual-core processor, 1GB of RAM, 8GB of internal storage (128GB with expandable storage) and a 2MP rear camera on the Lumia 435.

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Lumia 532 buyers will get an upgrade to a 1.2GHz quad-core processor and a 5MP rear camera. Both devices will feature dual-SIM support, but the highest network speeds will be 3G HSPA, meaning no 4G LTE for customers in Europe.

Microsoft also launched a third device, the Lumia 535, costing $99. The Lumia 535 will feature a 5-inch display (still 800 x 480) and two 5MP cameras on the front and back.

All three devices will feature Office pre-loaded, featuring Word, Excel, Powerpoint, OneNote and Outlook. HERE Maps, Skype and OneDrive (with 30GB of free cloud storage) are also available on the three Lumia devices.

The targeted buyers are budget customers in India, Indonesia, Eastern Europe and Latin America. Microsoft will have tough competition in India, with the launch of Samsung's first Tizen OS device, the Z1, costing $92 in the region.

Microsoft is also not selling these devices with the Nokia brand, meaning Indian customers might be a little unsure if the brand is reliable. Xiaomi, Micromax and Motorola are also big competitors in the region, with everyone wanting a slice of that mobile cake.

TagsLumia 435, Windows Phone, budget smartphone