Microsoft announced a new entry-level addition to its Windows Phone-powered Lumia device range in the shape of the €85 Lumia 530, following its decision to shelve the Nokia X line which competed at a similar price point.

The device is also a successor to the popular Lumia 520, which was previously identified as the subject of “strong customer demand”.

In Microsoft’s most recent results call, it was revealed that sales of Lumia devices were being driven by lower cost devices, such as the 500 and 600 series.

But the device is still more expensive than many entry-level Android devices, meaning that it will not be able to win entry-level buyers on price alone.

Lumia 520 has a 4-inch FWVGA display, a 5MP camera, and 4GB of onboard storage with microSD expansion slot.

It is powered by a 1.2GHz quadcore Snapdragon processor, with 512MB of RAM, and has HSPA connectivity.

There are signs it has been built to a price: it has no front-facing camera, for example.

And there are even some areas where it compares poorly with the Lumia 520: the earlier device had 8GB of onboard storage and supported 720p video capture (compared with FWVGA for the Lumia 530).

The recently announced X2, powered by a version of Android integrated with Microsoft’s online services, still beats Lumia 520 in some areas, including a front-facing camera “for Skype video calls and selfies”.

Availability is expected in August 2014. It will be available in both single- and dual-SIM versions, and will come with changeable shells.