Rs 251 smartphone - Company claims profit of Rs 31 on each set !


Daijiworld Media Network

New Delhi, Feb 22 : Ever since Ringing Bells, a Noida-based start-up company announced a smartphone for Rs 251, there are several doubts and rumours being spread across the nation through social networking sites as well as mainstream media about the feasibility and durability of Freedom 251 smartphone.

Many said that the Ringing Bells could be a 'run-away' company as it is collecting orders now, but promising to deliver the orders only after mid-April, 2016. There were a few police complains filed against the company as well, and even the Income Tax officials visited the two-storey rented office of the company.

A few have questioned the ethics of the business and surprisingly, the major smartphone players have written to the government expressing the doubts about Ringing Bells' business model.


But the founder, Amity University graduate Mohit Goel in a statement to the media has claimed that the sensational price of Rs 251 per set is deliverable, and what's more, will bring Rs 31 profit for the company on each set.

The Freedom 251 website was down for the first couple of days due to unprecedented traffic, and very few could place the order. The company claims that in just a handful of days, 25 lac people have already booked the phone. The company has now decided not to take fresh orders.

In a interview to daily news paper, Goel asks "Why am I being hounded? What wrong have I done?". The director of Ringing Bells insists that his new venture is not a fly-by-night operation and will begin customer deliveries from April 15. "Has there ever been a case of income-tax evasion against me or my company, or has there been an FIR filed against me in any police station? Why am I being called a 'bhagora' (who'll run away with the money)? I intend to do a valid business, just like any other startup, and I have a business plan ready."

The company claims it has received over 7 crore registrations on its website since it started accepting applications on February 18. "We are taking online bookings for only 25 lakh units in the first batch due to limited supplies, while giving another 25 lakh through offline distributors. I will deliver the handsets before June 30. All the money that we receive from customers through the payment gateway will be kept in an escrow account and we will touch it only when we deliver the devices." The company has an account with ICICI Bank.

The dual SIM Freedom 251 device carries a 4-inch display, 1 GB RAM, 8GB internal memory with a 1.3 GHZ quad-core processor, dual cameras and comes with a charger, headphone and one-year warranty.

The president of the company Ashok Chaddha "The price that works out per device is roughly around Rs 1,500," Chadha says. insists, though significantly lowering it down from the Rs 2,500 he had announced on the day of the unveiling of the device. "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," Chadha says.

And just how does he bring down the cost to Rs 251, and also earn a profit? "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," Chadha says.

The company is also talking to large e-commerce companies, such as travel website Goibibo, to get their apps on the devices. "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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Comment on this article

  • Aman singh, deoria (U.P)

    Sun, Jun 26 2016

    I want this phone

    DisAgree Agree Reply Report Abuse

  • peter, mangalore

    Wed, Feb 24 2016

    It is good thing, cheap electronic gadgets are being provided to maintain a stiff competition. Company may provide the smart phone for Rs 251, however, its smartness will only be known when the actual product is reached to the customer. Moreover, It may be one time use phone, in other word, there may not be any repair.

    Now days many company’s provide cheaper electronic product, whereas it accessories are much expensive than the original product. One should note that, since the product is purchased online, the user putting himself in risk when it comes to the warranty issues. One need to make several calls to solve his problem. Perhaps only answering machine speaks and no support team.

    In today’s marketing trend even a smart educated person being fooled in no time. Company is using every tactic

    DisAgree Agree [1] Reply Report Abuse

  • SURESHSHETTY, MANGALORE

    Tue, Feb 23 2016

    VERY EXCELLENT SCHEME SPECIALLY FOR MIDDLE CLASS & POOR CLASS EVERYBODY CAN SAVE THE MONEY & IT IS POSSIBLE ONLY WHEN SALES IS IN LACS & CRORES
    10 YRS BACK ALSO RELIANCE OFFERED THE SCHEME @500/-AND THE INSTRUMENT WAS GOOD , SO VERY GOOD IDEA RISK IS VERY LESS GAIN IS MORE IF IT WORKS PROPERLY.MY BE EVERY INDIAN HAVE MOBILE IF SUCH SCHEMES GET SUCCESSFUL.

    DisAgree [2] Agree [9] Reply Report Abuse

  • vikram, Dubai

    Tue, Feb 23 2016

    ಒಂದು ತಿಂಗಳ ನಂತರ...ಅಜ್ಜಿಯ ಸುಣ್ಣದ ಡಬ್ಬಿ ಆಗುವ ಸಂಭವ ಜಾಸ್ತಿ...

    DisAgree [7] Agree [10] Reply Report Abuse

  • Diva, Mangalore

    Tue, Feb 23 2016

    So you say no guarantee for Indian materials.

    DisAgree [5] Agree [7] Reply Report Abuse

  • vikram, Dubai

    Tue, Feb 23 2016

    I am just calculating cost of raw materials ....present day it exceeds Rs. 251

    DisAgree Agree [9] Reply Report Abuse

  • Praveen Kumar, Surathkal/Bangalore

    Tue, Feb 23 2016

    I dont think it will be a scam. They might not have expected that there will get such a huge response overnight and due to that they are not able to deliver on time. If they are a "runaway company" they would not have freezed bookings.

    Lets give time to such start ups. They are the future of our country who wants to bring something new to the people. The only stupidity they have done is by not giving COD option.

    Nevertheless, the product they have showcased initially might be a prototype and they might need capital to increase the production.

    DisAgree [1] Agree [5] Reply Report Abuse

  • Dr G Kusuma Kumari Chitti, Nellore/Kodyadka

    Tue, Feb 23 2016

    We comapny directors are sure of its production we may accept their word and go ahead May be its true. Lets see when they deliver the goods

    DisAgree [1] Agree [5] Reply Report Abuse

  • Evans Christopher Sumitra, UDUPI/NEW YORK,USA.

    Tue, Feb 23 2016

    It is unbelievable. There is something behind this smartphone. People should become smart before buying this so called smart phone.

    DisAgree [1] Agree [6] Reply Report Abuse

  • Ted, Udupi

    Mon, Feb 22 2016

    Goldmaal Hai Bhai Sab Gold maal Hai.

    Mohit Goel morani mutta ammer na sweets da angdid kullond itte ge, and all of a sudden he manages to manufacture a smartphone @ Rs.200.

    Ashok Chaddha better wear a tight nade ka chaddi, ijjanda jana chaddi girth paduver.

    DisAgree [2] Agree [9] Reply Report Abuse

  • Peter, Badhyar/navi Mumbai

    Mon, Feb 22 2016

    It was perhaps might be a joke.! that a beggar outside the then the Calcutta Airport was begging. When a gentleman arrived from an international flight
    gave him a Re.10=00 note,
    The beggar instantly offered back the alms and insisted for a foreign currency note in lieu of 10 note.
    This shall be the fate of @251 as well.

    DisAgree [3] Agree [5] Reply Report Abuse

  • Vincent Rodrigues, Promenade Road,Frazer Town,B'lore

    Mon, Feb 22 2016

    So cheap.some doubt about the quality of the phone and whether fit to use it on the health point too.

    DisAgree [2] Agree [10] Reply Report Abuse

  • Louis Fernandes, Belthangady

    Mon, Feb 22 2016

    I remember when computers were sold for Rs 2 lakhs by so called famous brands, HCL came up with an advertisement of Rs. 20,000 per PC and they delivered. The rest is history. Good luck to this young man. If he succeeds, then crores and crores of poor households will benefit. Startups are all about orbit-shift-innovation, that's what he is doing.
    He should have been appreciated and not condemned but Keep him under the scanner.

    DisAgree [1] Agree [24] Reply Report Abuse

  • Mohammed, Kundapur/Qatar

    Mon, Feb 22 2016

    Believe Me, No One Make Do Business Without Profit, it's Just a New Tactic to Fool Public.
    What About AKASH Tablet, Is It No. 1 in World ???
    What About 1 Lakh Rupees TATA Nano Car, Did Anyone Bought it For Rs. 1 Lakh ???
    What About SUTRA, in 2005 it Was Launched For Brows @ Rs. 15/- for Whole Day, Where it is Now ???

    DisAgree [1] Agree [24] Reply Report Abuse

  • Alex, Mangalore

    Mon, Feb 22 2016

    In 1961, there was a VPP parcel post case.
    Order a Bed Bugs killing machine, Rs 6 paid to postman on delivery.
    All were sent 2 small wood blocks, with instructions to place bedbug on one, and then crush that with the other block.
    I am sure, all will be sent plastic body toy phones.

    DisAgree [1] Agree [8] Reply Report Abuse

  • rajesh sg, mangalore

    Mon, Feb 22 2016

    please wait for some time baba ram dev is coming up with pathanjali phone for rs.50 (guess)its safe emits only neem and tulsi radiations.

    DisAgree [11] Agree [57] Reply Report Abuse

  • Rohan , Mumbai

    Mon, Feb 22 2016

    Have you not heard Baba Ramdev to set up Harvard-like university in Delhi in next 5 years..........lol

    DisAgree [2] Agree [12] Reply Report Abuse

  • macho, mangalore

    Mon, Feb 22 2016

    Business man Ramdev is fooling innocent bhakths, all his products are inferior, can you imagine COW URINE is being used in his products, whatever faith you have, but urine is discharge of unwanted water form the body.yak ....

    DisAgree [4] Agree [12] Reply Report Abuse

  • macho, mangalore

    Mon, Feb 22 2016

    As per the tech analyst, this phone of Rs 251/- WHICH IS PROMISED, the company which promised does not have any manufacturing facility, nor they have imported any components, industry experts say this is doubtful coz neither in INDIA nor imported the cheapest of the cheapest parts if you assemble you can sell at this price.

    This phone is promised only after some months, GUYS CHECK OUT, BEFORE BEING ULLU, wait for their promised delivery and then you decide.

    DisAgree [2] Agree [25] Reply Report Abuse

  • RRAG, Mangalore

    Mon, Feb 22 2016

    First give Free Wifi in India and then talk about Smart phones..! If you give smart phones at lower rates and charge for internet double the amount who need to use it ..?? Indian's are poor but Smart enough to judge where they stand ..!!

    DisAgree [3] Agree [31] Reply Report Abuse

  • Pradeep Shetty, Mangalore/Bajpe

    Mon, Feb 22 2016

    Ask Siddu for "Internet Bagya"

    DisAgree [13] Agree [1] Reply Report Abuse

  • Lewis, Udupi

    Mon, Feb 22 2016

    Forget about free wifi, here we are not able to use Internet for what we have paid.. Such a slow network in the name of 3G and 4G

    DisAgree [1] Agree [15] Reply Report Abuse

  • bhuvan, kavoor

    Mon, Feb 22 2016

    things wont be as expected in future for sure.

    DisAgree [1] Agree [12] Reply Report Abuse

  • The Alpha, Bangalore

    Mon, Feb 22 2016

    Is this why "Pradhan Mantri Jan-Dhan Yojana" was launched? LOL

    DisAgree [1] Agree [14] Reply Report Abuse

  • Sandesh, Mangalore, Oman

    Mon, Feb 22 2016

    Half Kg mutton, half kg King fish or 2 bottles King Fisher strong beer also comes almost same in India !! Next someone will come with an Idea petrol at Rupees 75 Paisa per litre

    DisAgree [2] Agree [15] Reply Report Abuse

  • Amith, udupi

    Mon, Feb 22 2016

    if 25 lakhs phones are booked in a few days ..he has cash in hand around 62.75 crores ..for next 4 months ..he might earn interest on it ..even if he refunds all money he makes a profit ..nice business policy ...ullu banao ..with painted chinese phone

    DisAgree [4] Agree [28] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Feb 22 2016

    If 3G smart phone Made in India costs Rs. 220 why Dassault Rafale Fighter Made in India costs $76,000,000 ...

    DisAgree [26] Agree [26] Reply Report Abuse

  • Navin Shetty, Manipal/ Bahrain

    Mon, Feb 22 2016

    Because Dassault Rafale is a fighter jet not smartphone.

    DisAgree [10] Agree [27] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Feb 22 2016

    Naveen / Krish, why do we require a Rs. 522 Crore Bomber if Rs. 230 Smart Phone can also do the same job ...

    DisAgree [2] Agree [13] Reply Report Abuse

  • Vinaya John, Mangalore/Bahrain

    Tue, Feb 23 2016

    hahahahhahahhah smart reply

    DisAgree Agree [5] Reply Report Abuse

  • Krish, Dubai

    Mon, Feb 22 2016

    Because 251 rs. mobile cant use as "Dassault Rafale Fighter"

    Even a LKG student know, unfortunately....

    DisAgree [9] Agree [20] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Feb 22 2016

    Navin/Krish, Smart Phones can also bomb Smart Cities ...

    DisAgree [3] Agree [8] Reply Report Abuse

  • Sheldon, Valencia/ Mangalore

    Tue, Feb 23 2016

    Smart Phone can bomb smart cities in Games like Lord of warz or Sim City Hahahaha

    DisAgree [2] Agree [4] Report Abuse

  • Sanjeev Kamath, Udupi

    Mon, Feb 22 2016

    Jossey,
    Only smart people understand smartphones and don't compare pizzas to buffalo dung.

    DisAgree [4] Agree [6] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Feb 23 2016

    Sanjeev, even a Pakistani Duffer can initiate a bomb blast inside India using a Smart Phone ...

    DisAgree [1] Agree [5] Reply Report Abuse

  • Hussain, Abudhabi

    Mon, Feb 22 2016

    Akash tablet ka bhai aagaya

    DisAgree [5] Agree [19] Reply Report Abuse

  • harees sardar, malpe /Dubai

    Mon, Feb 22 2016

    may be bank is behind this so easy way to generate liquid cash in short time , and roll it for 6 month extra revenue as a interest they will get as a profit from Bank these are big number game .... this is the faida of having big population in a country
    smart brain with smart Phone !!!

    DisAgree [2] Agree [18] Reply Report Abuse

  • shuba, mumbai

    Mon, Feb 22 2016

    Start up - business promotion

    DisAgree [1] Agree [11] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Feb 22 2016

    This start-up looks like Amitabh Bachchan & Narendra Modi playing Kaun Banega Crorepati ...

    DisAgree [13] Agree [21] Reply Report Abuse

  • Sanjeev Kamath, Udupi

    Mon, Feb 22 2016

    Jossey, both Bacchan & Modi are multi-millionaires already either in terms of wealth or dedication. Please don't demean their contribution by your persistent armchair lame sarcasm.

    DisAgree [5] Agree [3] Reply Report Abuse

  • Saihu, Udupi/Dubai

    Mon, Feb 22 2016

    this man is trying to cash the situation, now patriotism and nationalism issue is on peak, put the flag loaded with some modi vision he know blind bhakth's will sure buy this mobile as they have gone behind photoshop photos and video's. VHP's brick & cash collection drive for temple construction and very recent iron collection for the statue. andhe bhaktho ki kami nahi ghalib, ek doodhthey hai tho hazar milthey hai.

    DisAgree [3] Agree [13] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Mon, Feb 22 2016

    Onions cost more than mobile phones.

    DisAgree [1] Agree [30] Reply Report Abuse

  • Peter Lewis, Kalmady/k s a

    Mon, Feb 22 2016

    Blade Company, Beware!

    DisAgree [8] Agree [22] Reply Report Abuse

  • jeevan, mangalore

    Mon, Feb 22 2016

    Rs. 251 smartphone..
    Thank you for Make In India MODIJI VISION...

    DisAgree [67] Agree [18] Reply Report Abuse

  • Ravi C, Mangalore

    Mon, Feb 22 2016

    Is this made in India or assembled in India? A genuine answer will help me to change my perception.

    DisAgree [7] Agree [49] Reply Report Abuse

  • gm, mlur

    Tue, Feb 23 2016

    Its Mr. Goel's vision ...

    DisAgree Agree [3] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Feb 22 2016

    This IDIOT also talks in Crores ...

    DisAgree [19] Agree [33] Reply Report Abuse

  • Ravi C, Mangalore

    Mon, Feb 22 2016

    For me, this looks near to impossible unless the fund sourced from any other means like sponsorship or tie-up with companies, corporate, govt sectors etc.

    DisAgree [1] Agree [19] Reply Report Abuse

  • Santosh,K, Mangalore

    Mon, Feb 22 2016

    Run away company, My baby have plastic toy costs more than 1000 Rupees !!!!!!!!!

    DisAgree [5] Agree [39] Reply Report Abuse

  • Hyda, Mangalore

    Mon, Feb 22 2016

    Unfortunately, 3G data pack for 1GB is costs more than Phone.

    DisAgree [4] Agree [36] Reply Report Abuse

  • Sam, UDUPI

    Mon, Feb 22 2016

    Booking ka money bank mein deposit karlo 6 mahine mein karodon ka interest aayega o bhi profit !!!

    DisAgree [7] Agree [25] Reply Report Abuse

  • Navin Shetty, Manipal/ Bahrain

    Mon, Feb 22 2016

    Booking money goes to Escrow account not any bank account. Escrow releases money only after the final product is delivered to the consumer. BTW Escrow doesn't give any interest.

    DisAgree [3] Agree [15] Reply Report Abuse

  • Ravi C, Mangalore

    Mon, Feb 22 2016

    For now, there is no other option than blindly believe whatever Mr.Goel says. If it really works out in an authentic way, no one will have complaint.

    DisAgree Agree [23] Reply Report Abuse

  • gm, mlur

    Mon, Feb 22 2016

    Chalo Rs.251 mein kuch tho miltha hai hamara india mein.

    DisAgree [1] Agree [51] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Feb 22 2016

    Are we expected to believe Smart Phones Made in India cost Rs. 282 ...

    DisAgree [15] Agree [62] Reply Report Abuse


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