Android-based Smart II will be available in 25 markets across the Vodafone footprint by early summer.
The race is on to grab market share in the ultra-low price smartphone space, and this move by Voda proves that this is not just a market for ZTE, MicroMax et al to go after in emerging markets.
There's clearly value in this sector in 'mature' regions.
Thus, the Vodafone Smart II, which features a HVGA capacitive touchscreen with 64 million colours, 832MHz processor, 512MB of RAM, HSDPA and wi-fi connectivity, 3.2 megapixel camera and Assisted GPS.
It's even got voice-activated Google Search, pre-loaded links to Facebook and Twitter, plus Vouchercloud and various dedicated Vodafone apps.
Voda says the device has twice the processing power of the top-end smartphones available three years ago.
Patrick Chomet, Voda's group terminals director, said: “The Smart II is one of the most important devices we have ever introduced. It delivers a level of performance, functionality and quality that is traditionally the preserve of high-end smartphones but at an exceptionally affordable price.
"We believe the Smart II could represent a tipping point in the evolution of the market, bringing a new wave of consumers to the supermobile world for the first time.”
The Smart II will be available across Vodafone markets and partner markets this summer for under €99, launching first in the UK priced at £70.