Could £26 smartphone signal start of price war?

Emma Woollacott
The £26 Karbonn smartphone
The £26 Karbonn smartphone

Don't have a few hundred quid to spare for the latest iPhone? Help is at hand. Indian company Karbonn Mobiles has launched a smartphone costing just £26.

While the phone is available only in India, it's possible to order it online for delivery to an Indian courier firm and have it forwarded on - and because it's so cheap there's no duty to pay. It can be used on most UK networks with a pay-as-you-go card.