comscore Freedom 251: Indian mobile industry body raises concerns on world's cheapest smartphone priced at Rs 251

Freedom 251: Indian mobile industry body raises concerns on world's cheapest smartphone priced at Rs 251

The ICA has written to the Telecom Minister to look into the claims of the world's cheapest smartphone. The industry body claims the Freedom 251's BOM cost is at least Rs 2,700 and can't be priced below Rs 3,500 even when subsidized.

  • Updated: February 18, 2016 9:42 AM IST

Speakers are placed at the bottom. We will soon update you about the sound quality of the smartphone.

Expressing concern over the launch of a Freedom 251 at price as low as Rs 251, mobile industry body ICA has written to Telecom Minister Ravi Shankar Prasad to get into depth of the issue, saying the rate could not be below Rs 3,500 even after a subsidised sale. The Indian Cellular Association (ICA) also said that it is not appropriate for the senior political and government leadership to be present at the launch till the air around this is cleared and it is not shrouded under controversies. Also Read - World's cheapest smartphone 'Freedom 251' maker Mohit Goel arrested by Delhi police

Also Read - Ringing Bells Freedom 251 headlines again, MD claims can still deliver phones by early 2018

Also Read - Two arrested for cheating Ringing Bell of Rs 3 crore

Noida-based Ringing Bells is launching India’s most affordable smartphone, priced at Rs 251, a move that is set to disrupt the booming Indian mobile handset market. The 3G handset, Freedom 251, features a 4-inch display, Qualcomm 1.3-GHz quad-core processor and 1 GB RAM, according to details shared by the company. Defence Minister Manohar Parrikkar launched the smartphone Freedom 251 on Wednesday.

“For your kind information, the bill of material (BOM) value for a product like this when sourced from the cheapest supply chain cost approximately USD 40 (Rs 2,700). “And this, when translated into retail price after addition of applicable duties, taxes and with distribution and retail margins would be at least Rs 4,100 while the product is being sold at Rs 251,” ICA National President Pankaj Mohindroo said in the letter.

ALSO READ: Freedom 251 first impressions: The world s cheapest smartphone is a rebadged Chinese phone sold at loss

He further added that even if the product is sold at lower margins in an e-commerce type subsidised sale, the final consumer price cannot come below $52-55 (about Rs 3,500-3,800).

“Further, there is no visible mobile operator subsidy involved in this, which in any case is not the way the Indian mobile market operates,” he added.

Mohindroo said it would be advisable that officers from Deity get into the depth of this and ICA will provide any technical assistance, if required.

“We are bringing this to your kind notice, so that a scenario does not arise in the future, where the nation, the government of India, industry and trade are seen in a poor light,” the letter added.

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  • Published Date: February 18, 2016 9:39 AM IST
  • Updated Date: February 18, 2016 9:42 AM IST

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