I have a Vodafone 858 Smart, a branded Huawei U8160 running Android 2.2 Froyo.
If possible, how can I update its firmware to Android 2.3?
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From my favorite forum xda-developers, a step by step guide to apply the port of Cyanogen 7.2.0-RC1 (based on Android Gingerbread 2.3.7) for the Vodafone Smart VF858 (Huawei U8160).
This is not to take lightly, read and understand everything before proceeding. So please read the introduction from the famous question:
Assuming that you've read it and took note about VOIDING YOUR WARRANTY FROM BOTH THE CARRIER AND THE MANUFACTURER, and that you did understood and have read the contents provided by the first links!! Then, lets continue:
You will need the ROM Manager by ClockworkMod:
Must have app for any root user. Make backups, flash ROMs, and own your device.
Also the GooManager Beta by Snipanet Apps:
Is your backup done? Apps, contacts favorites, pictures, etc? Yes, then continue.
Rooting your phone
Installing ROM Manager & ClockworkMod
Sorry about the redundancy on some information, but one must be sure that readers understand the risks and are taking measures as to prevent data loss by performing a backup of personal data as well as the current ROM in use.