Increased rates of manufacturing and a partnership with telecommunications specialist Qualcomm will deliver Windows Phone handsets that cost less than $200 to produce in 2012.

That's according to Microsoft's Windows Phone head Andy Lees, who – during an interview in Hong Kong – predicted manufacturing costs will have halved before the end of the platform's second year on the shelves.

Turning up the volume

While the handset's cost to consumers will still be determined by OEMs, operators and retailers, he admitted, it should make Windows Phone a more profitable enterprise for Microsoft's partners.

"We are supporting componentry that will allow us to go below $200," said Lees, referring to Microsoft's working relationship with Qualcomm, with the two parties working on chips designed to meet the requirements of Windows Phone handsets.

He also claimed "volume, volume, volume" would be Windows Phone's signature in 2012, with new devices and increased shipment rates expanding the platform's presence on the shop shelves.

[source: Bloomberg]