Ringing Bells announced Freedom 251 smartphone at Rs. 251 only,which is approximately $3.65 USD. Now Freedom 251 is world’s cheapest smartphone ever with price 251 INR. After hearing price of Freedom 251 mobile,the question rising on everyone’s mind is how come the Freedom 251 smartphone is so cheap? I also thought lot about why Freedom 251 is so cheap?after lot of search i dig out reason behind why Freedom 251 is so cheap.
Related : Freedom 251 Booking Closed
Ashok Chadha, Ringing Bells’s president,explained how the company plans to achieve 251 INR low price.Firstly, he cleared the their is no any kind of subsidy from government,but the company plans to benefit from economies of scale. “The Indian market is at 2 crore units a month. If you take 30 percent of that, then you achieve economies of scale,” Chadha had said. The economies of scale would kick in once the company reaches a manufacturing capacity of 5 lakh units a month. He also suggests that components would be locally procured, which would help avoid the 13-odd per cent duty on imports.Hope this helps to Ringing Bells to keeping price cheap of Freedom 251.
Also Read: Why did Booking of Freedom 251 Closed before Scheduled Date?
An interview with the Indian express,Ringing Bells explained that company wanted to provide ” Made in India” handsets. Made in India handsets vision keep price of Freedom 251 very low. Ringing Bells also explained that why they showed prototype of Frredom 251 is from ADCOM company.ADCOM is an Indian company thats why Ringing Bells showed the prototype from ADCOM company.
Ringing Bells duo,Mohit Goel and Ashok Chadha explained that company will make profit of Rs 31 on each Rs 251 Freedom 251 phone.The duo say that they have a carefully laid-out business model to manage the disruptive price for the device “The price that works out per device is roughly around Rs 1,500,” Chadha says. insists, though significantly lowering it down from the Rs 2,500 he had announced on the day of the unveiling of the device. “We will source the devices from a supplier in Noida, who will be assembling the units for us after getting components from Taiwan.” And while we do this, we also start the work to identify land and suppliers for setting up our manufacturing locations. For this, we have identified Noida while also looking at locations in Uttarakhand, West Bengal, Bihar and Punjab,” Chadha says to the economics time.
Ringing Bells also planning for monetizing from the heavy traffic on their website. Comapny is also in contact with large e-commerce companies,such as travel website Goibibo, to get their apps on the devices. This will also help company to bring down the cost.
These are the reasons,which make Freedom 251 so cheap.
Also See : Ringing Bells Freedom 251 Price, Specifications and Features