Over 2 crore mobiles are sold every month in India. Low-priced handsets are nothing new: China-made phones are available at Rs. 500 in the grey market. But pricing hit a new low with Freedom 251, the smartphone offered for Rs 251 by Ringing Bells. The move has raised concerns over the viability of such pricing with several questioning the authenticity of the manufacturer.
A Hail Mary Strategy?
On Thursday, Noida-based Ringing Bells broke all records by opening its online sale of the world's cheapest smartphone at a sticker price of Rs. 251. With over six lakh hits per second, its website crashed even as scepticism grew. Here's what you need to know about Freedom Rs. 251.
Is Freedom 251 value for money?
Loaded with features available in a sub Rs. 4,000 phone like a dual camera, longer battery life, expanded memory, Freedom 251 says it has them all. It comes with a one-year warranty and seems like a total paisa vasool.
Can a real smartphone be so dead cheap?
Trade body ICA, which has written to telecom minister Ravi Shankar Prasad, says, "There's no way any company could sell below Rs. 2,700, even after considering all discount factors."
How can Ringing Bells offer this?
The company says it intends to save Rs. 400 by way of 'Make in India' sops, Rs. 400 selling online-only and another Rs. 500 by its 'low-price-more-volumes' business model. All the same, it defies logic, and a mismatch between income and expenditure cannot be ruled out.
How credible is Ringing Bells?
Little is known about the company. It was founded last September. Its first product, Smart 101, a 4G smartphone, is priced at Rs. 2,999. The company's founders IIT alumnus Ashok Chadha and Mohit Kumar Goel have no prior manufacturing stints.
'I think it's a new scam'
“Huge scam in Freedom 251 mobile phone. There is no background and experience of the owner… It’s a ponzi company…I think it’s a new scam."
-- Kirit Somaiya, BJP lawmaker