Microsoft has just unveiled the Lumia 540 budget smartphone, a follow up to the equally cost-effective Lumia 530, Lumia 535 (read our review here) and Lumia 532 dual SIM phone.

The Lumia 540, which is being marketed as a phone designed for emerging markets, is packed with features more similar to the Lumia 640 than other smartphones in its price range. It has a 5 inch display, 8MP rear camera, 5MP front-facing camera, weighs in at 152g and has 1GB RAM and 8GB internal storage. It is also powered by the Snapdragon 200 processor.

The Lumia 540 comes pre-installed with Windows 8.1 but Microsoft says users will be able to upgrade to Windows 10, its latest mobile and desktop operating system, later this year.

Buyers will get 15GB of OneDrive cloud storage and another 15GB if they activate OneDrive’s auto-upload feature on their Lumia 540.

The Microsoft Lumia 540 will be available in five colours and will launch in various countries in Middle East, Africa and Asia-Pacific next month at a recommended retail price of $149 (around R1788).

[Source and images – Microsoft]