comscore Ringing Bells to make Rs 31 profit on each Freedom 251 unit, says director Mohit Goel
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Ringing Bells to make Rs 31 profit on each Freedom 251 unit, says director Mohit Goel

Ringing Bells’ claims on how it will achieve Rs 251 pricing has already been questioned since the first announcement. The company now goes on to claim that it will make a profit of Rs 31 from each unit.

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Ringing Bells has been making headlines for its Rs 251 Freedom 251 smartphone. Since the launch, it has already come under scanner for the unrealistic pricing and even company s credibility to deliver at that price. While the government is already looking into the claims, Ringing Bells director Mohit Goel claims the company will make Rs 31 profit on each unit sold. 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

Explaining the pricing model, Ringing Bells Ashok Chadha says the company s business model has allowed to have such disruptive price. Chadha, however, said that the price per unit comes around Rs 1,500, which is lesser than Rs 2,500 he had quoted at the time of the launch.

The company stresses that economies of scale will further help reduce the price to Rs 1,200, while online sales model will help further save on money. The company pins hopes on companies whose apps will be pre-installed on the devices, ultimately saving Rs 300 more.

ALSO READ: Freedom 251: Telecom Minister Ravi Shankar Prasad asks DeitY to look into the Rs 251 smartphone

“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, he explained.

He also revealed plans to set up manufacturing plants in the country, and has already zeroed in on a few locations for this purpose. The company is also looking for locations in Uttarakhand, West Bengal, Bihar and Punjab. “We will source the devices from a supplier in Noida, who will be assembling the units for us after getting components from Taiwan, he added.

Goel also talked about how the company is being targeted ever since it announced the smartphone for Rs 251. He also denied allegations that the company was a fly-by-night operations. He also promised to begin 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, he said in an interview with Times of India.

Ringing Bells has been making efforts to quash the negative press after the company drew flak for its website crashes, and not coping up with the massive demand for its ultra low cost smartphone. It even sent out a detailed release to debunk the controversies surrounding the smartphone and company.

It is worth pointing out here that the company had sent out Adcom-branded smartphone to journalists. But now the company says the final unit will be different from the prototypes given earlier, and will meet the specifications mentioned on its website.

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  • Published Date: February 22, 2016 1:47 PM IST


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