Microsoft is growing its mobile operations in China, with 1,000 additional hires and a 15 per cent boost in R&D spending – an extra $75m (£47m) – this year. 

Its all part of an attempt to catch up with Apple and Google in the country as Windows Phone 8 launches, by developing mobile products and offerings tailored to China. To this end, Microsoft is working with local partners to develop China-specific apps, and converting its six development centres in the country – which currently devote 80 per cent of their time to global products – to a focus on offerings specifically for Chinese consumers.

“We respect that we have two players in the market which have a strong role, and we feel ready to attack and have different offers to basically change the game plan on that one,” said Microsoft China CEO Ralph Haupter.

Nearly 400m people in China use the internet on mobile devices, but the smartphone market is currently dominated by Android, with a 77 per cent market share for Q2, 2012, according to Analysys International.