World's cheapest smartphone launches at just £2.50

The world's cheapest smartphone went on sale in India on Wednesday, costing the equivalent of a cheap cup of coffee in the City.

Ringing Bells released the Freedom 251, costing 251 Indian rupees (INR) - or about £2.50.

Its specifications were surprisingly decent given the price point - it featured a four-inch, 960x560px display; 1GB of RAM and 8GB of internal memory; and micro SD card support - something lacking in the iPhone.

The camera was a relatively modest 3.2 megapixel sensor, with a 0.3 megapixel front camera.

It was released running Android 5.1, and was not part of a subsidised network deal. That is, the handset could be purchased SIM-free for £2.50.

Ringing Bells, which was founded last year, had already launched a 4G handset for INR 2,999 (£30).

Whether India's consumers would adopt the superbudget device remained to be seen, however. The government there backed a tablet called the Aakash, which at one point cost around £7.

Its performance was widely panned, however, and the project labeled a disaster.