Nokia Lumia 625
Nokia Lumia 625. Representational ImageMicrosoft

After taking over Nokia's Lumia, Microsoft is focussing on the budget smartphone category.

Recently, it launched a few Lumia smartphones and surprisingly, all of them cater to the same category.

According to a report by Chinese website WPDang, Microsoft is all set to release a couple of Lumia devices in the upcoming Mobile World Congress Show at Barcelona. Like every year, MWC 2015 will take place between 2 March and 5 March.

Significantly, Microsoft released its flagship smartphone - Lumia 930 - at the MWC 2014. Since then, the company hasn't released any other flagship device. According to WPDang, Microsoft will release their next Lumia flagship smartphone in the second quarter of the year.

However, the upcoming device is expected to be Lumia 1330 - the inexpensive variant of Lumia 830. Both the phones will reportedly feature less powerful PureView camera and less in-built storage capacity. The two models will run on the latest Windows Mobile 10 operating system. Both the devices will be priced in the budget category and fight with competitors in the same range with better camera, powerful processor and the other features of Windows 10 Mobile OS.

The upcoming Lumia flagship is expected to feature a 3D-Touch interface and powerful Octa-Core Snapdragon processors. Rumour has it that the 3D-Touch feature will allow users to interact by only hovering finger over the screen. The technology will feature improved and real life gestures.

Meanwhile, Taiwanese smartphone brand Acer is also rumoured to release some low-cost windows mobile solution in the entry-level smartphone category. The smartphone will also integrate with Acer's own Cloud Platform BYOC (Brind Your Own Cloud).