Microsoft have been enforcing very strict minimum specifications on mobiles than run on Windows Phone 7 , which has kept the prices high. Most Windows Phone 7 smart-phones come in at least £200, which is still a high price but has dropped from around £350 when the operating system launched.

However, Microsoft has announced at their Worldwide Partner Conference that they expect the prices of Windows Phone 7 mobile to drop vastly over the next year. They expect the price of Windows Phone 7 smartphones to drop down to $100 (£62) in the next year.

The drop in price is expected to occur for a number of reasons which include that the price of components is falling. However, the other main factor is that Microsoft are relaxing the minimum specifications for a Windows Phone 7 smartphone. So when you consider this reported drop in price you should exert some caution because it may well be that the mobile you get for $100  might be of a lower specification than the one you get today for $200.

The other factor that is expected to lower the prices of Windows Phone 7 is the agreement Microsoft has made with Nokia to produce Windows smartphones. Nokia will be able to bring lower prices than a lot of other Windows phone manufacturers , due to its size. Nokia is also very keen  to gain market share in the smartphone arena and are therefore likely to come in at a lower price-point.