Microsoft’s new Lumia 640 and Lumia 640 XL both come with free Office 365

Microsoft last night announced the Lumia 640 (pictured above) and the Lumia 640 XL, two new mid-to-low end handsets powered by Windows Phones 8.1.

The Lumia 640 is a 5-inch device boasting a 720p screen, a 1.2Ghz quad-core Snapdragon 400 processor, 1GB of RAM, 8GB of expandable storage and a 2500 mAh battery.  The handset also features an 8 megapixel rear shooter and a 0.9 megapixel front-facing camera. The Lumia 640 will be available in both 3G and 4G models, for 139 euros (approximately AUD$200) and 159 euros (approximately AUD$230) respectively.