Lumia 430 is the cheapest Microsoft smartphone yet costing under £50

Microsoft has launched its cheapest smartphone yet, with the budget Lumia 430 costing under $70 (£47) and aimed at emerging markets where it will challenge budget Android smartphones.

The Lumia 430 will have the same look and fell as the rest of the Lumia range, and will be available in the instantly recognisable orange colour as well as a more restrained black.

While the specs are certainly on the low end of the scale, they are not completely rubbish. The Lumia 430 comes with 1GB of RAM and 8GB of internal storage which can be upgraded by a further 128GB using the microSD card slot.

The phone features a 4in screen which is relatively small by today's standards and has a pretty low resolution of 800 x 480 pixels. The biggest compromise being made by Microsoft is in the camera technology, with the rear sensor just 2 megapixels (MP) while the front-facing camera features a 0.3MP sensor - though at least it has a front-facing camera.

In fact, compared to the Lumia 530 which was previously Microsoft's "most affordable phone" the Lumia 430 adds proximity and ambient light sensors, as well as having a front facing camera.

Upgrade to Windows 10

Microsoft says it will launch the budget smartphone in select emerging markets in April 2015, including India, the Middle East and Africa, Asia-Pacific, Russia, Kazakhstan, and Belarus. It will come with a dual SIM configuration which is a big selling point in these markets.

Of even more importance however is the fact this phone will be upgradeable to Windows 10 when Microsoft's updated operating system is launched this summer with the Lumia 430 running Windows Phone 8.1 at launch.

Microsoft's Jo Harlow said the launch of the Lumia 430 is aimed at getting Windows devices into the hands of as many people as possible:

"People around the world have responded enthusiastically to our affordable Lumia range. We continue to invest in this segment to ensure that as many people as possible can enjoy signature Microsoft experiences, regardless of budget.

"The Lumia 430 Dual SIM continues our commitment to combining the right hardware, software, services and apps with the right price to give people a smartphone they can afford and be proud to use."

Microsoft recently launched the Lumia 640 and Lumia 640 XL at Mobile World Congress to address the budget market in Western markets.