Ringing Bells shares how Freedom 251 becomes cheapest smartphone in the world
Ashok Chadha, President of Ringing Bells has revealed the math behind the costing of Freedom 251, and shares how the company can afford to sell a 3G smartphone at only Rs 251.
Zee Media Bureau
New Delhi: The world is in disbelief how Ringing Bells can afford to sell a 3G smartphone at only Rs 251.
The President of Ringing Bells Ashok Chadha has revealed the math behind the costing of the phone. He said that the bill of material of the phones comes around Rs 2000. However, the costing of the phone has been done on the assumption of economies of scale.
The company is banking on the mammoth response as it is seeing to its phone. It is hoping that by making the hardware of the phone in its two plants, which are slated to come up in Uttarakhand and Noida, he will be able to save Rs 400 per phone on the manufacturing cost.
Chaddha said that the company will save another Rs 400 per phone by selling online and avoiding the frills of a retail distribution set up.
He expect the cost to come further down as pre-booking orders swell and the momentum of the response to the smartphone is maintained.