In a dramatic u-turn, Ringing Bells will now import the components for 50 lakh units of Freedom 251. The company had earlier announced that the phone will be launched as part of the Make in India initiative.
The company will start the manufacturing process in the next 6 to 8 months, said Ringing Bells spokesperson. This latest development in the Freedom 251 episode has raised more questions than it has answered.
Earlier this week, the company’s Public Relations Officer (PRO), over a telephonic conversation with The Quint, revealed that the assembly process had already begun. However, when questioned further, the company refused to divulge the address of the assembling unit.
Also Read: Is Ringing Bells Conning Customers With the Freedom 251?
Ringing Bells claims that they have 6 crore registrations for the phone. The company was set to deliver the first 50 lakh units by 30 June.
Now, obviously, the company can’t produce 50 lakh units without a manufacturing setup. Therefore, Ringing Bells plans import the components of the phone from Taiwan and will have to pay the 13.5 percent import duty for each unit.
However, the phone will remain priced at Rs 251, and the company claims that they will still make a profit from them. So, how will they make it happen?
The company is going to import components for 50 lakh units to assemble the Freedom 251 smartphone. This will be inclusive of import duty but at a much lower rate than the usual Rs 2,500 per piece. This way, we’re able to fix a competitive pricing structure for the finished product which is then passed on to the buyers for Rs 251. We can even share the proof of materials with you to justify those claims.Company spokesperson
The company is also in talks with app makers to pre-load the Freedom 251 with a variety of apps. This will act as a source of revenue for the company.
As for the manufacturing unit, the company intends to set up modular plants that can be quickly started. This information has truly baffled us, as setting up a plant and starting the manufacturing process in less than a year, is a far-fetched idea.
The company has shortlisted land to set up its modular plant, which will be finalised in the coming weeks and hopefully within 6 to 8 months, the plant will be able to produce locally.Company spokesperson
Meanwhile, the company has informed its buyers that Freedom 251 can now be bought via cash on delivery. This way, Ringing Bells hopes they can quash away people’s concerns of them running away with their money.
Also Read: Your Freedom 251 Money Is Safe With Us, for Now: PayU
Ringing Bells’ claims definitely seem sketchy. The company’s plan to set up modular plants doesn’t seem very well thought out.
Also, we’re not sure whether any vendor in Taiwan is equipped to provide the brand with components for 50 lakh units in time. We’ll keep looking for these answers till the company gives us a credible reason to support their case.
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