There’s a huge buzzword going on about the cheapest smartphone in the world – Freedom251 mobile priced at just Rs 251. So what’s the truth behind the sasta, sundar and tikau but yet to be delivered mobile…???!!!
First of all forget about smartphone, at a mere Rs 251, its not even possible to make a proper basic phone as per basic economics of cost of manufacturing. It’s possibility is rare when only its directly subsidised by government (like it does for PDS kerosene) or indirectly by some NGO, individual or a company. Both these cases don’t hold true here. Also predatory pricing or any other tactic to disrupt the market seems to be a joke as this company has zero brand value.
Statistical calculations of the Freedom251 phone
Total cost Rs 291 per phone. (Rs 251 mobile cost + Rs 40 shipping charges)
Company got 6 lakh orders per second = 6 lakh orders X Rs 291 = Rs 17.46 crore
Company took bookings for approx 6 hrs and 15 min which is 22,500 seconds
Rs 17.46 crore per second x 22,500 seconds
= Rs 3,92,850 crore
So in just 6 hours and 15 min, a new Reliance Industries (RIL) was born as Ringing Bells, the brand owner of Freedom 251, crossed turnover of RIL of Rs 3,88,494 crore in year 2014-15
Ringing Bells interest income is Rs 3,92,850 crore x 4% interest x 1/365 (by taking minimum interest rate) = 43.05 crore per day.
The company will start delivery after June. So for four months its interest income will be = Rs 43.05 crore per day x 120 days = Rs 5,166 crore
After four months, if Ringing Bells fails to deliver the product (while is highly likely) and choses to refund the entire Rs 291 to customers, the company will have to shell out Rs 291X 6,00,000 orders per seconds X 22,500 seconds = Rs 3,92,850 crore.
Deducting promotion cost of even Rs 50 crore or maximum Rs 100 crore, the company can easily pocket in Rs 5,000 crore !!!
Background of company Its a very new company with no details available, and only having 4-5 page website. The company was established in September 2015 and its website freedom251.com was purchased earlier this month itself.
Same company (ringingbells.co.in) sold smart phone for Rs 2,999 this month and despite heavy promotion by government failed miserably and many people have not got even got the product. No response from company in this matter and no numbers are working. Emails are bounced back. Many customers complaints are still unattended and unanswered.
People will not complain much and escalate as Rs 251 is such a small amount as per public mentality and even wont escalate due to time constraints. Company has starting booking but its website crashed. This company seems to be cashing in on the flash sales concept mastered by flipkart.com. So it seems to be a pure marketing gimmick.
Also the timing of launch also coincides with the ongoing government’s ambitious MAKE IN INDIA project raising doubts of being purposely planted to serve dual purpose of gaining media attention by serving as proxy for promotion of this event and driving out foreign companies.
Is this a scam and a fraud or is this company genuine or a fake, or a fly by night company, or a new type of ponzi/ pyramid scheme similar to chit funds mopping money from public and vanishing (difference here is they are not asking to make members but buy product), only time will tell. Remember SpeakAsia … If it’s too good to be true, its not true. !!!
Ringing bells name is also very good. Apne dimag ki ghanti bajao and savdhan ho jao !!!
To sum it up
Har Kali tunki Sintex nahi hoti,
Har Suit Boot wala Analyst nahi hota,
Har acchi cheez sasti nahi hoti hai aur har sasti cheez acchi nahi hoti hai (at most times).
A word of caution
Views are personal based on my analysis and relevant information. I don’t intent to offend or defame any person or company. They are without malice, prejudice or bias.