Huawei Ascend is world's cheapest Android phone, that is sold for only $150 - unlocked, no carrier subsidy or plan necessary.
The phone come with Android 2.1 and a 528 MHz Qualcomm MSM 7200A CPU, but don't worry - it's actually a speedy little demon. It also comes with a 3.5" display and a 480x320 resolution, 3 MP camera an QCIF video recording.
If Android phones are already being sold for $150 then what should we expect 3 years from now? I think it's a good bet if you think that Android smartphones will sell for less than $50 3 years from now. That will take out most feature phones out of the market, and in the process hurt Nokia where they still maintain some leadership.
Huawei also seems to be the new HTC, which just like HTC started out by making hardware for others, and now they are selling it under their own brand. It also seems their phones will be pretty high quality for the price they are asking.
Here's a video of this lovely cheap Android phone that is good for adults, but also a great gift for kids: