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Spreadtrum Communications, China’s leading mobile chip supplier, and Mozilla, the Firefox’s OS designer, have teamed up to create a $25 smartphone — its startling low cost enabled by web technologies.

Spreadtrum unveiled the SC6821 WCDMA smartphone chipset at Mobile World Congress that, they say, will enable $25 smartphones. The two companies have completed the integration of Firefox OS with several of Spreadtrum’s WCDMA and EDGE smartphone chipsets.

Firefox OS smartphones now include Alcatel’s Fire E, LG’s FireWeb, Huawei’s Y300 and ZTE’s Open. They are made available primarily through operator channels. Firefox OS is expanding into new markets in 2014. Telefónica will join the list of countries where it’s selling Firefox OS phones with 21 operators across the globe now supporting the open Web device initiative.

But Scott Bicheno, senior analyst at Strategy Analytics, points out that Firefox OS handsets make up “less than 1% of total global smartphone shipments.”

Mozilla’s $25 Firefox phone is a direct threat that Nokia never saw coming, says Venture Beat. Nokia’s launch of three Android smartphones, is also targeted at emerging markets.

The Nokia X, Nokia X+ and Nokia XL are priced to capture the fast-growing affordable smartphone market and provide an on-ramp to Microsoft services like Skype, OneDrive and outlook.com.

The Nokia 220 is an Internet-ready mobile phone with social apps, priced at only EUR 29. The Nokia Asha 230 is the most affordable Asha touch device ever. Available in single and Dual SIM variants, it will start rolling out immediately across Asia-Pacific, Europe, India, Latin America, the Middle East and Africa.

The Verge edits Nokia’s launch down to four minutes.

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