Microsoft is looking to draw more people to Bing search and its other internet services with the release of two new mid-range smartphones.
The Lumia 730 and the Lumia 830, made by Microsoft-owned Nokia, will run the latest version of Windows 8 software and feature Cortana, Microsoft's answer to Apple's Siri voice assistant.
Cortana can help with directions, calendar appointments and messages - all interactions that will steer users to Microsoft's online services such as Bing and OneDrive cloud storage.
The phones, announced at the IFA consumer electronics show in Berlin, will start shipping in September.
It's not clear when they will reach Australia, nor how much they will cost.
The Lumia 730, which has a 4.7-inch screen and a 6.7 megapixel rear-facing camera, will cost 199 euros ($A298) in Europe.
It will have 3G connectivity and two sim card slots - an in-demand feature in developing countries where users switch frequently as they hunt for the cheapest offer. A 4G version will be known as the 735.
The 830, with a five-inch screen and 10 megapixel rear-facing camera, will sell for about 330 euros ($A495).
Neither phone is a match for Nokia's flagship Lumia 930, which has a 20-megapixel camera, one of the most powerful of any phone.
Microsoft bought Nokia's phone business in April as it seeks to boost Microsoft's Windows Phone system, which has had little traction compared with Apple's iPhones and Google's Android system.
Microsoft chief executive Satya Nadella has made mobile phones and internet-based services priorities for the company as its traditional businesses - Windows and Office software installed on desktops - slow down or decline.
Microsoft, which bought Skype three years ago, is also throwing in three months of free international voice calls with every new purchase.
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