We've detailed some of the deals on offer in the UK market below, but you should find a similar pattern in many other markets.
While many people will want to wait for the Windows Phone 8 devices, especially given that Windows Phone 7.5 devices can not be upgraded to Windows Phone 8, the discounting does offer a siren's call for those looking to get into Windows Phone on a budget (or if you want to introduce a friend, or family member, to the platform). Our personal pick would be the Nokia Lumia 800, especially if you are able to take advantage of the further discount available to those upgrading from an existing pay-as-you-go phone, but the HTC Radar and Nokia Lumia 710 are also good handsets.
Nokia Lumia 800
Phone 4u are offering the Lumia in black, cyan, pink or white for £159.95 when bought with £10 on air time for Orange, T-Mobile, O2, or Vodafone. However, if you go into a Phone 4u high street store and upgrade from an existing PAYG phone (which must have at least six months of regular usage), then you'll only pay £129.
If you prefer to go direct to the operators you'll find that O2 are offering the Lumia 800 for £149.99 on PAYG through their online and high street store, and Orange are charging £159.99. In both case it will be necessary to purhcase a top up with the phone (£10 on O2 and £15 on Orange). You may also find that some retailers, such as Carphone Warehouse, are willing to price match. You will, in most cases, need to show proof of pricing, but a picture of a ship display is usually sufficient.
The lowest SIM-free price we've so far online is from Asda's online store where the Lumia 800 is available for £149, although it is currently out of stock. Amazon UK are charging £214.99, but the price has been fluctuating and is likely to drop. It's worth noting that the stock of PAYG handsets in Carphone Warehouse and Phones 4u are usually unlocked (SIM-free), but this can not be guaranteed.
Nokia Lumia 710
By shopping around you can also find a good price for the Nokia Lumia 710. For example, Carphone Warehouse are offering the Nokia Lumia 710 for £99.95 (plus a £10 op up). The same deal is available in store, with the price reduced to £89.95 if upgrading from an existing PAYG device.
HTC devices are also having their prices cuts. For example, the HTC Radar is available, both online and on the high street, from Phones 4u for £99.95. The HTC Mozart is also available for £99.95 online and select Phone 4u high street stores are also offering the HTC Mozart for just £39.95 when upgrading from an existing PAYG device.