No one denies that iPhone has become the single most popular smartphone in the world, but Microsoft is confident Windows phone will outsell iPhone in China - the world's largest smartphone market.

The Redmond-based company has an ambitious short-term goal - to outsell iPhone in China, according to Bloomberg Businessweek.

Simon Leung, Microsoft's chief executive for the Greater China region, told the reporters at a Windows Phone 7.5 launch event in Beijing on Wednesday that the pricing strategy will help Windows Phone defeat its strong rivals.

“We will continue to drive the price down. Our goal is number one. Having a goal to be number two is not really a goal,” Leung said. However, he didn't provide a timeline for Microsoft's targets.

The Windows Phone devices will be around 1,000 RMB ( about $158), but a 16GB iPhone 4S is priced for 4,988RMB (about $789).

The low-price strategy is not uncommon. For instance, the forthcoming Nokia Lumia 900 will hit the market with a low price tag, even though it boasts of 4.3-inch Super AMOLED display, an 8-megapixel camera with Carl Zeiss lens, and 4G LTE support.

What do you think about the low price strategy? Will the Windows Phone outsell iPhone in China or not? Leave your comment below.