As we have previously reported, dirty cheap Firefox OS smartphones are now available for Indian customers. Spice has announced today India’s first Firefox OS powered smartphone, the Spice Fire One Mi – FX 1. The handset is priced at a really competitive price of Rs,2,299, which is somewhere around $38. So, while this isn’t a $25 smartphone, it’s one that’s cheaper than $50.

The Spice Fire One is obviously aimed at those who can’t afford a more premium experience, but even this market is getting crowded. Google’s recently announced Android One initiative is perhaps the biggest threat to such small players like Mozilla’s Firefox OS who is struggling to find a place for itself.

However, you shouldn’t expect too much from this Firefox OS smartphone, as it comes with basic the most basic features need to “convert” a feature phone to a smartphone – calls, messaging, email, camera and modest performance. This is a 2G Dual SIM enabled device, equipped with a 1 GHz processor, 3.5 inch HVGA capacitive touch screen and a 2MP primary camera along with 1.3 MP front one.

The smartphone comes with unique features like Adaptive App Search or the Single Window Search, which allows users to find all relevant information and apps available on the web together with a single click. It also supports several Indian languages like Hindi, Tamil and Bangla. The Spice Fire One comes preloaded with such apps like Facebook, Twitter and Connect A2.

Mr. Prashant Bindal, Chief Executive Officer at Spice, said the following:

This is a step towards enabling the dreams of the small town masses of connecting with their aspirations through affordable smartphones. With the ultra-low cost Spice Fire One, we at Spice, aim to convert the feature phone users into smartphone users, thereby, aiding them with the power of internet. Our intentions are clearly to synthesize technology and style in our products and make them available at affordable prices. This partnership with Mozilla showcases our commitment to providing the best technological innovations first hand to our customers. This joint undertaking with Mozilla is a breakthrough in product offering and a brand new concept for smartphones.

Dr. Li Gong, President of Mozilla Corporation, also shared his input

Just one year after the first Firefox OS device launched, Firefox OS smartphone is now available in 17 countries across Europe, Asia and Latin America. Our partnership with SPICE will be an exciting Firefox OS launch in India. Having one more strong partner as SPICE, we are confident that Firefox OS devices will realize a whole new category of smartphones with affordable price. Furthermore, we can ensure every user to enjoy the power of Web.

The Spice Fire One Mi – FX 1 will be initially available only on snapdeal.com and after you will be able to buy it at major retail stores, Spice HotSpot stores and www.saholic.com. It will officially be released on August 29, which is just one week away.

The Firefox OS concept is truly an interesting one, but we wonder whether Mozilla isn’t a bit too late to the party. Sure, with the help of carriers, they’ll probably manage to sell handsets in such parts of the world as India, China, South America or even parts of Africa, but does Mozilla have the power to grow its marketplace with apps that already exist on cheap Android handsets? Let’s wait and see.