> I'm sure it could have been a contender at the cheaper end,
Microsoft never worked out what their target market was. They claimed it was corporates then loaded up the phones with XBox, Zune and social media like it was a Kin. They claimed they were targeting iPhone yet were low-end with WP7.
The phones only sold when they were remaindered or otherwise selling below cost - which is why Nokia phone division never made a profit with them in spite of being given $1 billion a year.