Microsoft expects the Lumia 535 and Lumia 535 Dual Sim will cost around €110 (£86), with both handsets coming in a range of colours and running on the Windows Phone 8.1 operating system.
Billed as a "5x5x5" smartphone package, the Microsoft Lumia 535 comes with a 5in screen, 5MP front- and rear-facing cameras, and five free integrated Microsoft services (including Skype).
Under the cover, you'll get a 1.2GHz quad-core processor, 1GB of RAM and 8GB of storage. This can be upgraded to 128GB with a microSD card, or you can use 15GB of free OneDrive storage.
Jo Harlow, corporate vice-president for phones at Microsoft, said: "Lumia 535 comes with our ‘5x5x5’ proposition.
"Innovation should be available to everyone, and we are doing this through the very best integrated Microsoft services included, and out of the box, a 5MP wide-angle front-facing camera, and a spacious 5-inch qHD screen — all at an affordable price."