Intex had launched the Cloud FX smartphone, priced at Rs 1,999. It claims that the device is the cheapest smartphone available in the country.
     
The company added that it will sell one lakh devices by the end of this month and reach the sales target of 5 lakh devices by year-end.
     
The Cloud FX is targeted at consumers who are looking to upgrade from feature phones to smartphones. Intex aims to capture a larger chunk of the booming affordable smartphone market in India.  
     
Handset makers are betting big on mobile Internet to reach out to newer audiences. Various reports suggest that the next billion population accessing the Internet for the first time will do so on their phones instead of personal computers.
     
Companies like Microsoft, which acquired Nokia's handset division, are also targeting the affordable smartphone category aggressively, estimating it to be a USD 50 billion annual opportunity.
     
The smartphone market in India grew at 84 percent year-on-year to 18.42 million units in Q2 2014 from 10.02 million units (in April-June 2013 quarter), as per research firm IDC said.
     
Korean handset maker Samsung led the smartphone market with 29 percent share, followed by Micromax 18 percent, Karbonn 8 percent and Lava six percent.  
     
Software major Mozilla, which runs the Firefox browser, had showcased a smartphone prototype costing as little as USD 25 at the Mobile World Congress in Barcelona in February, targeting at developing countries including India and China.
    
It had partnered Intex and Spice from India for launching these low-cost devices in the country, which is the fastest growing smartphone market globally.
    
Spice had also launched its device, Fire One MiFX 1, last week for Rs 2,299. Sales numbers of Spice's handset were not available.
 
The Cloud FX is powered by 1 GHz processor, has 128MB RAM, 256MB memory (expandable upto 4GB), 2MP rear and VGA front camera and 1,250 mAh battery.