Microsoft announces new Lumia handsets, camera update

SAN FRANCISCO - Microsoft on Thursday announced two new Lumia phones aimed at the entry-level smartphone market and an update to its Windows Phone operating system for Lumia phones that looks to enhance the camera experience.

Microsoft also announced what it calls a new 'affordable flagship,' the Nokia Lumia 830. Priced at about $430 unsubsidized (330 euros) it will begin rolling out globally this month. No word on U.S. carriers or exact availability.

The Lumia 830 sports a 10 megapixel PureView camera, integrated wireless charging and what Microsoft says is the thinnest optical image stabilization system to date on a Lumia. It comes pre-loaded with Microsoft Office Mobile and 15GB of free OneDrive storage. It ships with the new Windows Phone 8.1 update, dubbed 'Denim.'

The entry-level dual SIM Lumia 730 (199 euros unsubsidized, or about $260) and 735 (219 euros, or about $290) are 'built for Skype calls and selfies,' Microsoft says. They each have front-facing, wide-angle, 5-megapixel cameras and come with a three-month Skype Unlimited World subscription thrown in. The Lumia 735 supports LTE/4G and wireless charging. They also begin shipping globally this month.

The Lumia 735.(Photo: Microsoft)

The 'Denim' update to Windows Phone 8.1 focuses on speed, quality and making the camera more intuitive to use. It will initially roll out as an update in the fourth quarter for Lumia 930, Lumia Icon and Lumia 1520 and as an over-the-air update for Lumia 830 and later to other Lumia Windows Phone 8 phones.

Lumia phones, especially the Lumia 1020, have become known for their high-end camera capabilities.

Among other things, a feature called Moment Capture lets you start 4K-quality video recording with a long press of the camera button. Each individual image frame is 8.3 megapixels, which means you can select any moment to be saved as a still image.

Another feature called Rich Capture uses auto HDR (High Dynamic Range) and dynamic flash. Essentially, you can keep shooting without adjusting settings and select and edit later.

Microsoft also says it also has improved low-light shooting.

The announcements come as the fall smartphone wars are about to heat up. Samsung on Wednesday revealed its latest oversized Note handsets, including the Note Edge with a separate curved display alongside the right edge. And coming up on Tuesday, Apple is slated to take the wraps off its newest iPhon e - including potentially one with a larger screen.

In its August report on smartphone shipments, researcher IDC said Windows Phone volumes had declined from the year before but were up slightly from the previous quarter at 7.4 million with a 2.5% market share, enough for third place after Android and Apple phones.

Just last month, HTC announced a version of its flagship HTC One M8 for Windows Phone.

Microsoft also has been focused on its app eco-system, which has lagged Android and Apple. There are now about 300,000 apps including recent additions such as Uber and Fitbit.

'The real competition has shifted to customer engagement,' notes Forrester analyst Frank Gillett. Samsung's challenge is to avoid becoming an 'interchangeable' Android device maker, he says. And Microsoft, which aspires to get recognized as a 'viable digital platform in the mobile era' needs new partnerships and developer support.

Follow Nancy Blair on Twitter: @nansanfran.

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