On Wednesday evening a virtually unknown Indian company launched the "world's cheapest smartphone", named Freedom 251, for 251 rupees ($3.6; £2.50), in Delhi.
At this price, the phone is clearly being subsidised. The company denies any government subsidy or involvement, and says that economies of scale will ultimately help it meet the low selling price. However, industry experts familiar with telecom manufacturing say that the handset's cost of components alone adds up to over eight times its selling price, not counting production, distribution and marketing costs. That suggests an over 90% loss being absorbed somehow