As part of the Nokia keynote at MWC, it was announced that WP7 will have lower hardware requirements to allow for cheaper phones, but is that a good move?
While Microsoft is promising the keep fragmentation down, developers now have to do more testing and will have less of a potential WP7 market if their apps do not work on the lower end devices. This very thing still plagues Android and was part of the poor user experience with the older Windows Mobile phones. Sure they will run WP7 but most likely very slowly with lots of response lag.
With all the subsidies that are provided, I, personally, do not see a good reason for this beyond a quick and dirty way for Microsoft to get more market share. But if it comes at the expense of the user experience, then it will be a grave mistake.
Nokia has already announced the Lumia 610 with this lowered specs, and by the time you have read this article, they will probably have announced its successor.