Freedom 251: Ringing Bells to make a profit of Rs 31 on each phone sold

From a child to grandfather, we bet everyone knows about this mind-boggling smartphone which created a wave in the nation by not just its price but also its splendid features- Freedom 251 by Ringing Bells. .

The smartphone was launched on Wednesday, 17 Feb and since then it has been in controversies. This smartphone is manufactured by Noida based Ringing Bells Pvt. Ltd. The company says that this smartphone is supported by the government and is in line with other government programs like Make in India, Digital India, Skill India etc. No doubt that the price of the smartphone is too good to accept. On the other hand the smartphone promises the best it could. Let us brief you once again the major features of this smartphone that left us all in surprise.

This smartphone comprises of a 4-inch gHD(960*540 pixels) display, Qualcomm 1.3GHz quad-core processor,1GB of RAM , 8GB internal and 32GB expandable memory, 3.2 megapixel rear camera and dual sim supporting 3G connectivity.  It houses pre installed apps like women safety, Swachh Bharat, Fisherman, Farmer, Medical, Facebook, YouTube, WhatsApp and many others with an updated Android 5.1 Lollipop. Ringing Bells Pvt. Ltd. is also offering 1 year warranty and 650 service centers throughout the country. Certainly, one could not have asked for more.

Initially people were not able to book the smartphone reason being the crashed website. The director of Ringing Bells told that the website crashed because they received entries more than they expected. Let us tell you that 68 lakh people attempted per second to buy the phone. The website was shut and restarted within 24 hours making people access it easily and order the unbelievable smartphone. The placed orders will be delivered at the given address by 30th June 2016.

The smartphone is once again in headlines after the director Mohit Goel said that not only will he deliver all the orders placed for Rs 291 (251 smartphone price and 40 rupees delivery charges) but will also make a profit of Rs 31 on each sold piece. Isn’t this bizarre? You might be thinking how is it even possible. Allegations were made that the Noida based company has copied the design of the America Based popular smartphone seller company Apple.

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The president of the company Ashok Chadha says, “We will source the devices from a supplier in Noida, who will be assembling the units for us after getting components from Taiwan. And while we do this, we also start the work to identify land and suppliers for setting up our manufacturing locations. For this, we have identified Noida while also looking at locations in Uttarakhand, West Bengal, Bihar and Punjab. The price that works out per device is roughly around Rs 1,500,”

ICA (Indian Cellular Association) president Pankaj Mohindroo, on behalf of all the existing handset suppliers wrote a letter to telecom minister Ravi Shankar Prasad, articulating doubts about the purpose of Ringing Bells, saying it is not possible to supply a phone for Rs 251. On this Ashok Chadha said, “Economies of scale gets it down to around Rs 1,200, and thereafter an online sales model cuts down marketing and sales expenses, giving us further savings,” he says. And to this we will add marketing piggybacks from companies whose applications we load on the devices. We will save around Rs 300 per device more through this. Also we will also monetize from the heavy traffic on our website and will make it into a marketplace for other brands to hop on. This will also help us to bring down the cost.”
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It would be interesting to see the smartphone actually being delivered to the people at just Rs 251 though the director of the company Mohit Goel said that in the first phase the company will be delivering only 25 lakh handsets out of the total registration of 7 crore due to the limited supplies.

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