Here's a shocking number: Microsoft sold 8.4 million Lumia smartphones last quarter; BUT it also sold 19.4 million feature phones.
This explains the low-end Lumias like the 435 - MSFT would like to upgrade those users off of feature phones up to smartphones.
If they can stay the course, and as hardware gets cheaper for better Lumias, MSFT has some potential for traction in the global phone market.Blackberry can't compete with Apple because Blackberry has no price advantage.
On the other hand, Apple will never try to enter the low-end market.
Likewise, in America, MSFT is unlikely to make much progress in the post-paid market, where smartphones are either heavily subsidized in traditional 2 year contract plans, or paid off monthly as part of the new-style post-paid plans.
But as prepaid gets more popular - and GoPhone, Cricket, and T-Mobile are fighting hard to legitimize it - Lumia could get some traction. The Android competition, with the exception of Motorola, doesn't have much brand-recognition.
Of course it would be a kick-in-the-teeth to MSFT if Nokia re-entered the phone market, with Android, after the non-compete agreement ends this year.http://americasmarkets.usatoday.com/2015/07/22/microsofts-phone-outsells-apple-watch/