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Nokia Lumia 630 will land in UK at £90, same price as the Moto E

Nokia's latest budget smartphone will arrive in the UK towards the end of next week, carrying a sub-£100 price tag (the handset has already gone on sale in Asia).

The Lumia 630 will hit shelves on 29 May, boasting Windows Phone 8.1 at a bargain basement price of £90 SIM-free, which equals the asking price of Motorola's recently unleashed Moto E.

The key specs of the Lumia 630 include a 4.5in display with a resolution of 854 x 480 (for a pixel density of around 220 ppi) fashioned from Gorilla Glass 3, along with a 1.2GHz quad-core Snapdragon 400 CPU, 5 megapixel camera, and 8GB of storage along with 512MB of RAM.

The latter might sound worrying, but bear in mind that Windows Phone 8.1 is designed to run more slickly on lower powered hardware, much as Android has taken this direction with KitKat. Indeed, it's the bargain basement market that Android has done so well in across the globe which Microsoft is eyeing with Windows Phone 8.1, with Redmond also set to drop the licensing fee on its mobile OS to enable more affordable handsets in emerging markets.

It's interesting to see that the price is directly pitched against the Moto E, which is also £90 unlocked. The Moto E offers a slightly smaller (4.3in) but sharper screen (at 256 ppi), with broadly similar specs (though the Android phone does offer 1GB of RAM – yet only half the storage at 4GB, and a lesser spec CPU in the dual-core Snapdragon 200).

There's no doubting that this looks to be a compelling budget offering from Microsoft, although in terms of the bargain basement battle against the Moto E, perhaps the hardest pill to swallow for some will be the OS on the Lumia. We're definitely looking forward to getting this one in for testing, though, to see how the screen and general performance levels shape up in the real world. Look out for our review soon.