8. Company boasts of 650 service centres pan India, yet no information about that on their website.
9. There is no venture funding behind the company which raises questions on the company’s claim of producing at a very large scale (more than 100 thousand devices every month ).
10. At the launch event on Wednesday, Ringing Bells President Ashok Chadha claimed it was being funded by the Agricultural family of UP( referring to Mohit Goel’s family), whereas Mohit’s father denied that to be the case.
11. Company says they plan on allowing other sellers to sell via their eCommerce platform, which does not exist right now.
12. Govt has not offered any subsidy on their phone.
13. Make in India tag also seems to be fake because Mr. Chadha himself claimed the parts will be imported from China.
14. Phone’s will start shipping from June 2016
15. No mention of any return policy although they mention 1 years warranty
Coming back to the very important question once again, how come they can offer at such a low cost and still make money?
According to statistics given by some industry experts…
a. Effective selling price of freedom 251 is rupees 291 per phone including shipping of rupees 40.
b. If their claim of 600,000 order per second is to be believed, it sums up to rupees 17.46 cr.
c. It was taking order till 12.15pm approx I.e 6 hrs and 15 min which is 22,500 seconds. That means, rupees 17.46 cr per sec x 22,500 sec = rupees 3,92,850 cr.
d. Rupees 3,88,494 cr was turnover of reliance industries in year 2014-15
Does that mean within 6 hours and 15 minutes they crossed turnover of reliance?
e. And if we calculate interest on the said amount per day, 3,92,850 cr x 4% x 1/365 (by taking minimum interest rate) = 43.05 cr.
f. And if after 4 months they will say we are unable to give product and refund rupees 291 to everyone 43.05 cr x 120 days approx = 5,166 cr. They will earn within 4 months by way of interest
Now even if you consider their promotion and marketing costs, deduct rupees 50 lacs, 1 cr, 5 cr or even 50 crores, that will not make much difference to the figure.
If you’re considering ordering this super cheap android smartphone, order it at the risk of loosing 291 rupees, as it may not make much difference to your pocket, probably you will just need to skip a movie on the weekend to compensate the loss
Do let us know your comments below…
About Deepak Chauhan
Hi I am Deepak Chauhan, a Digital Marketing Strategist. I'm the CEO & Co-Founder of VOCSO WEB STUDIO, a Creative Web Design & Development Agency based out of India & USA. I love to blog about my experiences and strategies to help new startups. When I'm not working, I'm either travelling, playing foosball, cricket or learning photography.
Facebook • Twitter • Google • Youtube • Flickr • Pinterest •
Most Recent On Vocso Web Studio