Microsoft Looks To Cut Windows Phone Production Costs? In Half

Microsoft is looking to cut manufacturing costs on its Windows Phone 7 handsets, according to statements made by WinPho boss Andy Lees in Hong Kong today. The company has struggled through its push into mobile since the launch of the Windows Phone platform last year, which honestly made more of a ripple than a splash in the market. Now that Mango is ready to emerge as a "third mobile ecosystem," as Verizon CEO Lowell McAdams would put it, Microsoft wants to step up its volume, and cutting production costs seems to be the means to that end. Lees said Redmond is looking to cut manufacturing costs in half, taking them from around $400 per handset (which was the cost when the software debuted last year) to less than $200 per handset.

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