Smartphones are getting cheaper, as Nokia has demonstrated by launching its $99 smartphone, the Asha 501. Aimed entirely at capturing the potential emerging markets of South America, Africa and Asia, we wonder if it could put a dent in the growth of Google’s Android smartphones and Samsung’s range.

The former world leader in mobile phones has to come up with an extremely aggressive strategy to pull back customers away from Samsung, and the $40 billion emerging markets is a great start. 22 percent of India’s mobile phone market is cornered by Samsung presently, with phones starting at $110, so the $99 Nokia Asha 501 has immense potential. But it also has to contend with local company Micromax which has feature-rich phones as cheap as $65.

And Apple is also rumored to be working on making cheaper iPhones, which could make life harder for Nokia and Samsung. Until Apple officially announces them, the Asha 501 with its 3-inch QVGA display with a resolution of 320X240 pixels, 3.2 MP rear camera, dual SIM card slots, and a microUSB port could make quite an impact in the market.