Microsoft has unveiled a cheap version of its Lumia smartphone in a bid to target "young, ambitious people" seeking their first smartphone.

Priced at $150 (£100) in the US, the Lumia 540 Dual SIM will measure five inches across and run Windows 8.1, as well as including the video-call service Skype and Office suite as standard.

Perhaps most importantly for the youth market, the front-facing 5 megapixel camera will allow people to take wide-angled selfies, whilst the back-facing 8 megapixel camera will let them take high-quality photos.

Jo Harlow, corporate vice president for phones at Microsoft, said: "The Lumia 540 Dual SIM is a testament to our passion for product-making that is reflected across the entire Lumia product portfolio and will continue with future devices.

"With the Lumia 540 Dual SIM, we’ve made it possible to deliver a smartphone with strong design and technology credentials that is also fun to use, and incredible value for money."

The product will begin rolling out in India, the Middle East and Africa, Asia Pacific, and Italy at the start of May, available in cyan, orange, white and black.

Customers will also be offered the chance to upgrade to Windows 10, which Microsoft plans to launch sometime this year.