While Apple and Google fans coo over the latest high-end smartphones, rival Alcatel is focussing its attention on the opposite end of the market by launching the world’s cheapest handset.

The Alcatel 1010 costs just £5 and comes with a built-in MP3 player, 3MB of memory and a wireless FM radio.

Customers are also not obliged to top up a minimum amount of credit when they buy the phone, as is the case with other budget devices.

However, the handset is not designed for tech-savvy customers and is classed as a ‘feature’ phone, as opposed to a smartphone.

It doesn’t have social networking applications or games, for example, and only makes and receives calls and text messages.

Customers will be able to buy the phone from Asda and it is only available on the T-Mobile network as part of the deal.

The phone weighs 59g – half the weight of Apple’s latest iPhone 5S – and comes in Black, Deep Red or Fascinating Red, which is more like maroon.

Earlier this year PrePayMania.co.uk was selling the Alactel One Touch 232 for just £1, but it had to be bought with £10 worth of credit.

Claire McAuley mobile phone buyer at Asda said: ‘Purse strings are stretched ahead of the festive season.

‘A quarter of mums are budgeting more than ever and our customers are always looking for new ways to save money.

‘We’ve launched the lowest priced phone as a solution to keeping in touch at the lowest cost possible this Christmas and are expecting shoppers of all ages to snap them off the shelves.’

There has been a surge in companies offering ‘cheap’ and ‘cut-price’ gadgets recently in the run up to Christmas.

Last month Tesco launched its 7-inch Hudl Android tablet worth £119 – yet with Clubcard vouchers, customers could buy the device for as little as £40.

source: dailymail UK