Microsoft unveiled a $50 Samsung Focus Flash as part of a publicity event in New York City which part of a campaign to cut the price of smartphones.

Google Droid models have available since spring for $79 and even Apple has had to drop the price of its contract phones to compete. Greg Sullivan, senior mobile communications manager at Microsoft said that 70 per cent of  US had not got a  smartphone but over the next few years, hundreds of millions of new smartphone users will come on board, especially if the price is right.

Researcher IDC says the global smartphone market will rise 49.2 per cent this year, with more than 450 million units shipped, compared with 303.4 million in 2010. Microsoft currently holds about 2 per cent of the global smartphone market and less than 6 per cent of the U.S. market.

Now it is pushing its new line of Mango OS handsets and pushing the likes of the $50 Samsung Flash Focus. The phone incorporates a cutting-edge touch system for calls, texting and social networking. And it can also directly access Xbox Live and work with Microsoft Office documents.