Ringing Bells Would Make Profit Of Rs 31 On Each Freedom 251 Sold
The Freedom 251 smartphone is not only the cheapest smartphone in the world, there is nothing phony about its sales, asserted Mohit Goel of Ringing Bells, the company behind the launch of Freedom 251. Since he announced the launch of a mobile phone for Rs 251, Mohit Goel has faced widespread scepticism, along with visits by police and income tax officials at his rented two-storey office in Noida.
Speaking to The TOI, Mohit Goel, Director of Ringing Bells said that the company will not only deliver the phones at the low price quoted, but also make a profit of Rs 31 on each handset sold.
The company claims it has received over 7 crore registrations on its website since it started accepting applications on February 18. The director of Ringing Bells insists that his new venture is not a fly-by-night operation and will begin customer deliveries from April 15.
“We are taking online bookings for only 25 lakh units in the first batch due to limited supplies, while giving another 25 lakh through offline distributors. I will deliver the handsets before June 30. All the money that we receive from customers through the payment gateway will be kept in an escrow account and we will touch it only when we deliver the devices,” he added. The company has an account with ICICI Bank.
Ashok Chadha, President of the company and Goel told that not just economies of scale, even the online sales model, and revenue from companies whose applications will be loaded on the device, will help in cutting down cost, and make profit.