Steve Ballmer, Microsoft chief executive, insists that the company is not playing catch-up as it focuses on both low and high-cost smartphones after launching a new version of its Windows Mobile phone operating system.

“I think that if you look at the market today, volumes speak volumes. In the last year we shipped over 20m phones,” he told the Financial Times, “I’d say, mostly, it’s game on – we are all out there. We are leading the pack on volume. I’d say Apple’s got some advantages on image, but we’re in the early stages.”