The Intex Cloud FX is only for sale on India’s online shopping site, Snapdeal.
The phone runs on Mozilla’s Firefox operating system and as such it will be the first low-cost device running that system available in Asia.
India’s emerging market is regarded as the world’s fastest growing for low-cost smartphones.
Various emerging markets across Asia are seen by mobile device manufacturers as the key remaining areas for massive growth.
“With the launch of Intex Cloud FX, we aim to enable the masses to get smartphone experience at the cost of a feature phone,” Mozilla said in a statement.
The device is expected to “redefine the entry-level smartphone and create strong momentum in Asia”, said Mozilla’s president, Li Gong.
Analysts expect these types of low-cost smartphones to give users in emerging markets an affordable opportunity to upgrade from so-called feature phones – or phones that do not easily access the internet.
However, they are not designed to rival devices such as Apple’s iPhone or Samsung’s Galaxy phones.
Popular applications such as Facebook and Twitter will be available on the new phone.
India’s Intex Technologies manufactured the new Mozilla smartphone which has a memory of up to 4GB, Bluetooth and wi-fi, as well as dual-SIM capabilities.
The handset also supports several languages including Hindi and Tamil.
Mozilla is expected to make more announcements about new smartphones in India this week.
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