The Economic Times of India is reporting that a Microsoft is planning a lower-cost version of Windows Phone 7 specs to come after the initial launch of Windows Phone 7 later this year. Aimed at emerging markets and developing countries, this low-end chassis would probably feature a smaller screen with a lower resolution, possibly the HVGA 480 x 320 resolution that was mentioned at MIX.

Says Sudeep Bharati, director, developer tools for Microsoft India’s Visual Studio Team at Tech.Ed 2010:

“The low-cost version of the phone will have a different chassis than version 1 to be launched by 2010 end… The new version may also have a smaller screen and will thus be priced lower to suit developing markets like India. We are in talks with OEMs to gain their feedback on a new chassis”

[via]