Microsoft took to the Mobile World Congress (MWC) to unveil a pair of mid-range Windows 8.1 handsets aimed at business customers and productivity-minded users.

Unlike most device manufacturers bringing out their hottest new products at the Mobile World Congress, Microsoft decided to take the wraps off the Lumia 640 and Lumia 640 XL, mid-tier phones that, while showing off decent specs, are actually more about the software than anything else.

Although the 5.7-inch Lumia 640 XL and the 5-inch Lumia 640 are decidedly not going to compete with the latest flagships, Microsoft includes a full year of free subscription to its Office 365 suite of productivity software for each phone and for another device, whether it is a Windows, Android, or iOS device. The subscription also includes 1 TB of cloud storage and 60 minutes of free Skype international calls every month for the next 12 months.

"It makes these devices great for business users," said Stephen Elop, Microsoft's head of its devices and services unit, as he took to the stage in Barcelona, Spain where the MWC is currently taking place. "It has Microsoft services built in that you need for work: Office, Outlook, OneDrive already built in. It works seamlessly with other devices. It fulfills the needs of IT decision makers with things like enterprise-grade security, seamless integration with business IT, platform convergence."

The Lumia 640 XL is a mid-tier phablet that showcases some of the lessons Microsoft learned from its high-end Lumia 1520, which many have criticized as too big even for people with enormous hands. The 5.7-inch smartphone features a less-than-exciting 1280 x 720 resolution with 259 ppi display, a Snapdragon 400 processor, 1 GB of RAM and 8 GB of storage with a microSD slot but keeps a more-than-enough 13MP rear camera and a 5MP front shooter for video conferencing.

Inside, the higher-end handset is a 3,000 mAh battery that Microsoft says can last up to 37 days of standby and up to 24 hours of talk time on 3G. The phone also supports Wi-Fi, Bluetooth, GPS, NFC and a sensor technology that allows the phone to act as a pedometer for counting steps. All in all, these make the Lumia 640 XL a great bargain at 189 euros, or $211, for the 3G version and 219 euros, or $245, for the 4G version.

On the other hand, the smaller Lumia 640 costs 139 euros, or $155, for the 3G model, and 159 euros, or $178, for the LTE version. It has the same specs as its older brother save for the 294 ppi display and the camera, which is an 8MP shooter on the back and 1MP in front.

The Lumia 640 supports a wider range of LTE bands, which indicates Microsoft's plan to sell the phone in other countries, particularly in developing markets, to compete with the array of low-end Android smartphones. Both handsets also come in single-SIM and dual-SIM versions.

In the U.S. and Europe, the Lumia 640 XL will be available from AT&T, T-Mobile, Deutsche Telekom, Telefonica, and Orange this month while the Lumia 640 will come later in April.

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