Computer and phone maker Microsoft has launched a new mobile phone for just €19. The Nokia 130 is being marketed for 'first-time mobile phone buyers'.

The handset has a built-in video player and music player with up to 46 hours continuous playback on a single charge, Microsoft says.

It also has an FM radio and allows USB charging.

"It is estimated that at least 1 billion people in the world still do not have a mobile phone, while at the same time there is increasing demand for reliable backup phones in both mature and high-growth markets" said Jo Harlow, corporate vice president for phones at Microsoft.

The €19 price tag is the estimated cost before taxes and subsidies. It is expected to go on sale in selected markets in the third quarter of this year.

Nokia, and Microsoft, will be hoping to win back some market share which is being dominated by rivals Apple and Samsung.

According to statistics from the International Data Corporation (IDC) at the end of April, Apple and Samsung had 45% of the global smartphone market share between them. This was followed by Huawei, Lenovo and LG. Nokia did not feature in the top five.

Microsoft bought Nokia's mobile division for US$7.2bn (€5.32bn), which is being integrated into Microsoft.

But Microsoft announced plans to cut up to 18,000 jobs worldwide last month. Chief executive Satya Nadella said Nokia was to account for the majority of the losses.

It comes as Microsoft was granted permission to build a massive headquarters in Leopardstown for some 2,000 staff.

The deal includes an €8m fee to the council for parks, roads, and public transport.