5 secrets behind the disruptive selling price of World's Cheapest Smartphone.

By now I guess all of you are very much curious to know what are the secrets behind the jaw dropping pricing of the Ringing Bells Freedom 251, the World's Cheapest Smartphone to be manufacture in India by Ringing Bells of Noida and to be sold at a price of Rs.251/-.

Freedom 251 the world's cheapest smartphone

While most of us are facing problems in booking one Freedom 251, I have come up with some interesting secrets which might led for the speculative pricing of this mobile phone.

Ashok Chadha, which is the president at the Ringing Bells, was the one who explained the business model powering the Freedom 251, but left a part of the business model for ourselves to understand. 

In his words, "Let me clarify one thing, there's no government subsidy," he said. "The Freedom 251 takes full advantage of the benefits provided by Make In India and Startup India."

He said the Freedom 251 was the first product to fully leverage the advantages of these programmes and that, apparently, was also the reason why the company could sell it at a price of Rs.251.

The Freedom 251 is essentially an Adcom Ikon 4. Chadha admitted the phone had a manufacturing cost of around Rs.2,500. But, he explained, there was a unique business model behind the phone helping the company sell it at a price of Rs.251.

Freedom 251 of Ringing Bells. 

Even with this, the phone costs around Rs.1000, but Chadha believes that his company has some trump cards up its sleeve that will make it a viable business. "Many players want to use our e-commerce platform to sell their products, so we make up the remaining Rs.700-800," he said.

1. Since the mobile phone is assembled in India, it takes the advantage of duty exemptions that amount to 13.8 per cent. By this they reduce the price by around 400/-.
2. The company also plans on selling the phone through its own online e-commerce platform, which cuts out the distributor and the middleman. That also helps it reduce the cost of the phone by saving another Rs.480 this way.
3. The company is eyeing on almost 30% of Indian smartphone market share within 12 months. Because of this cheap price, the company is trying a distinct economies of scale which no other company other than apple has tried in the smartphone business. Manufacturing and selling mobile phones in bulk quantity helps the company to reduce the overhead manufacturing charges per unit.
4. The company might also make use of the prepaid money, if you already knew, the website explains that the deliveries of all orders will be made on June 30th, 2016. That is almost 4 months from now, so within this period of time, the company might use the revenues for either manufacturing the mobile phones or investing in some other place wherein they get higher returns as the company is presently backed by the goel family.
5. The company can also save some money as far as the shipping charges are concerned, as there is 40/- shipping charges per every unit of order, when the delivery is to be made in bulk quantity, it is very obvious that they save money of certain quantity of units. For example consider a college like IIT Guwahati, from where let us assume a minimum of 200 orders were received that totals around 8000/- of shipping charges but the company can make use of bulk delivery option of courier services and save at least 50% of this shipping charges amount.

The smartphone also comes with some pre-installed apps which it can use for placing advertisements and thereby earn revenues from advertisements.

While the actual factors behind this disruptive pricing is still kept secret by the company officials, the above mentioned might possibly be the reasons. 

Anyways, we will be knowing the latest developments of these in the days coming. Until then keep tracking Freedom 251 and try to get one for you too.
Link: www.freedom251.com

Fun Byte:
We purchase Kids Water Game Toy/Mobile for Rs. 100/- , 200/- while almost same price we are getting a 3G smartphone. Are your bells ringing?

Kids Water Game Toy Mobile Phone very similar to Freedom 251 !