Ringing Bells adds to confusion, says will sell 25 lakh phones offline

“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”. Experts said the Rs 251 price tag is too good to be true and the communications ministry pointed out that a phone with the same specifications would cost a minimum of Rs 2,300.

In an interview to the Times of India, Goel said that he will make a “profit of Rs 31 on each handset sold”.

Besides, it has also come under the scanner of excise and income tax departments with the I-T Department looking into the financial structure of the Noida-based company. Why am I being called a ‘bhagora’ (who’ll run away with the money)? “I intend to do a valid business, just like any other startup, and I have a business plan ready”, Goel responded to the criticisms he is subjected since the launch of Freedom 251 device. However, the final device will have the same features and design that have been displayed during the launch.

Ringing Bells’ President Ashok Chaddha said the manufacturing cost of the phone is about Rs 2,500, which will be recovered through a series of measures like economies of scale, innovative marketing, reduction in duties and creating an e-commerce marketplace.

When contacted a company spokesperson said the company is presently importing components from Taiwan and will be assembling them at a pilot facility in Noida, UP.

Tuli added that “In reality, make in India costs more than made in China”. A letter each from BJP leader Kirit Somaiya and Indian Cellular Association prompted the government to set up the committee which is expected to file its report sometime this week. Well, the company has now answered those questions, at least partially. The company supposedly aims to monetize its website, which has garnered heavy traffic since going up. When questioned about the vouchers, Ringing Bells say they have no idea who’s involved, and that they’re now only selling their smartphone online.

Goel also talked about how the company is being targeted ever since it announced the smartphone for Rs 251.