The median personal annual income in India is around 616$ (Source : Gallup 2013). I don't think 7$ is "cheap".
[0] https://data.worldbank.org/indicator/NY.GNP.PCAP.CD?location...
[0] http://www.livemint.com/Politics/AvHvyHVJIhR0Q629wkPS5M/Indi...
Smartphones are extremely important part of India's way of life as almost everything else is regulated to death. It is a ray of light for most poor people and you will find people who might not have a toilet but will own an android smartphone.