Another... crores By Anand Narayanaswamy - Feb 18, 2016 Freedom 251 For the last few days, the tech portals were loaded full of content about the new Freedom 251 smartphone launched by a Noida based company, Ringing Bells on February 18 at an event attended by Union Defence Minister along with other political leaders and tech enthusiasts. However, there are doubts about the credibility of the company and Freedom 251 could be another fraud scam like Aakash Tablet with the expected loss amounting to over Rs 2500 crores. Launched under the Digital India initiative, Freedom 251 is the second smartphone from the company, the first one being Smart 101. Moreover, the handset has been widely marketed with the Make in India tagline. Even though the company has taken down the order system due to an unknown technical problem, you should be little careful before placing an order for Freedom 251 once they resume. We inspected the images of various other smartphones on the market and noticed that Freedom 251 resembles the design aesthetics of the Adcom Ikon 4, which is already available for Rs. 3999. Moreover, Ringing Bells has mentioned that technical support will be provided by Adcom. If Freedom 251 is a blatant copy of Adcom Icon 4 or it is the Adcom Icon 4, then the device might not be manufactured under Make in India initiative and it amounts to misuse of the trademark owned by Government of India. Check these images uncovering the truth of Freedom 251. There is also a possibility of Adcom suing Ringing Bells if they have stolen the original design from Adcom. If this happens then the production of Freedom 251 will come to a halt and the fortune of people who have placed orders for the phone will hang in the balance. Freedom 251 is being sold by the same company, who previously took orders for Smart 101 handset from people. With almost same features, the company never fulfilled the orders to all those who ordered the smartphone. Moreover, there are reports that customers never got confirmation after placement of orders. According to industry analysts, it is not feasible for a company to sell a smartphone at Rs. 251 when the cost of spares along account to Rs 1,500. There are several smartphones on the market with the same features and are priced at Rs. 3,000. With strong reasons to doubt the authenticity of Freedom 251, the LCD, digitizer and front bezel alone will along cost $35. On the other hand, Indian Cellular Association has set a minimum price limit for a 3G enabled smartphone at Rs. 2,700. Hence, a price tag of Rs. 251 for a 4-inch IPS display smartphone looks suspicious. With over 5 crore people expected to book Freedom 251, because of the hype it generated, the company will earn 12.5 billion rupees. Imagine a situation where the company vanish one fine morning. You will not only lose Rs. 291 (Rs. 40 delivery charges) but also will not be able to keep track of the company people. Even though you have paid around Rs. 291, it is still your hard earned money which you can’t afford to lose. At that time, you will shy away from disclosing the fact that you have ordered the handset and will move on just like what people did with Aakash tablet. Yes, Rs. 250 is a small amount for one, but look at the kind of money Ringing Bell will receive from the people collectively. At this price point, 5-10 crore bookings are achievable in the population of 125 crores. And that alone will make company over Rs. 2,500 crores! And who will care if they do not deliver or refund? No one! The company had invited Union Defence Minister and other political leaders for the event. That doesn’t mean they can’t fraud the people. You should remember the curious case of Aakash tablet. A simple Google search with the keyword ‘Aakash tablet scam’ will throw open all facts. Even if you receive Freedom 251 in good condition, the cost of repair in case of any fault will be higher than what you paid to obtain the product. Moreover, there is a huge risk involved since the battery is prone to explode. Meanwhile, the company has not disclosed the SAR value, which is done by all manufacturers of smartphones. We posted a query regarding this on the official Facebook page of Ringing Bells but they haven’t replied with the correct values. If the SAR value is higher, then the smartphone will be highly dangerous to use both for adults and kids. A question which remains unanswered here is that why the company is not accepting orders after the manufacturing of Freedom 251. Initially, the company can produce 50,000 units and sell them. This will ensure trust among people rather than paying a low cost and waiting for over 4 months. That being said, it’s up to you to decide whether to place an order for Freedom 251. If you have paid and placed an order then you will have to rub your fingers for the next few months till you receive the smartphone. Ideally, you should not be part of a group who have paid for the smartphone and got frauded. In the end, you might never receive the smartphone or receive a faulty phone with the cost of travelling to service center alone will cost more than Rs. 300. Associate anything with the patriotism, Nation, Tricolor Flag, and underprivileged sector of the nation, and fool the masses in buying anything. Don’t be fool and be wise, nothing comes cheap in this world!
Update: Upon request of MP, Dr. Kirit Somaiya, Govt. of India has ordered for a legal enquiry on Rising Bells to testify the company’s claim of selling Freedom 251 smartphone for Rs. 251. Source: On 2/18/16, Bhavya shah <bhavya.shah...@gmail.com> wrote: > More articles pouring in... The Government of India will be terribly > disreputed if this company does turn out to be a fraudulent one, for > any and whatever endorsement and support it has shown towards Ringing > Bells. > > The Freedom 251 launch fiasco: What the hell is going on? > No one has a clue about what's going on with this new smartphone, > maybe not even the company that funded it. (PTI) > GWYN D'MELLO | Wed, 17 Feb 2016-11:27pm , Mumbai , dna webdesk > Here's everything you need to know about the launch of the "world's > cheapest smartphone" Freedom 251, and all the uneasy mystery > surrounding it. > There’s been much hubbub on the net off-late, surrounding the launch > of the cheapest smartphone in India, and indeed the world, the Freedom > 251. Launched today by Defense Minister Manohar Parrikar at an event > in New Delhi, the new smartphone from recently formed Ringing Bells > Pvt Ltd was touted to absolutely wreck the industry on release. And > that’s when more details started trickling in. > > First and foremost, the phone, and the company behind it. While the > initial announcement made was that the phone would cost Rs 500, > subsequent clarifications revealed it would instead be priced at Rs > 251. Sounds too good to be true? Well, that might be because it is. > The numbers are worrisome > You see, the Freedom 251 is clearly a loss-making endeavour. Selling a > phone at that kind of cutthroat price does not benefit the company at > all. Even using the cheapest components possible, a phone with the > Freedom 251’s specifications should cost at least Rs 1,000 (more > likely above) to manufacture, and that doesn’t include advertising and > distribution. So who’s forking over the dough for the remaining > expenses? Of course, Ringing Bells founder and director Mohit Kumar > Goel does say Prime Minister Modi’s make in India campaign was an > inspiration for the product, but there’s not been any word of a > subsidy or collaborative effort between the two. > Another financing option would be through telecom partners, like with > the iPhone in the US. Consumers buy a smartphone at a reduced price, > but are then locked into a calling/data plan with one particular > telecom operator for a fixed period of time. Again, there’s been no > mention of a tie up with any major telecom players, but it IS possible > that’s an announcement we’ll hear at launch. Of course, then comes the > issue of the target audience. The Freedom 251 is the most basic of > smartphones, unsuitable for a majority of middle class buyers. Coupled > with the fact that the phone will come preloaded with apps like > “Fisherman”, “Farmer”, and “Medical”, indicates this device is geared > towards lower income users who would prefer to spend less and purchase > a no-frills smartphone. If that’s the case, then does a locked-in data > plan force these users to adopt an expensive postpaid plan, or has the > telecom operator involved done the unthinkable and provided prepaid > options? > One the other hand, a little digging into Ringing Bells itself > uncovers more questions than answers. The company was incorporated > just a few months ago, September 16, 2015, by director Mohit Kumar > Goel. Ringing Bells also brought on additional directors Sushma Devi > and Rajesh Kumar on November 2 last year. The website for the company > was registered earlier in August 2015, but was updated in February of > this year. It IS curious though, that the portal is still under > construction; the FAQ section sports an ominous “coming soon” message. > Now, Goel comes from a 30-year-strong family business of agricultural > products. That possibly means he’s got a boatload of money. A Zauba > listing for Ringing Bells says that it has authorized share capital > (the maximum value of shares that can be opened to stakeholders) worth > Rs 1,00,00,000, and it’s paid up capital (the amount of shares funded > by stakeholders) sits at Rs 60,00,000. In addition, Ringin Bells’ > website states they’re looking for distributors, with a few caveats. > They want priority stores to have a minimum area of 500 sq ft, > situated in market areas or malls, and with five dedicated attendants > for Ringing Bells products, whose salaries will be paid by Bells. Yes, > the company does have 4 other devices available on its website, but > it’s unlikely to assume they believe the profits from those can offset > losses incurred by the Freedom 251’s manufacture and distribution. > Yet, they say “15 percent return of investment is expected (for > distributors) and break even period is 2-3 years with proper marketing > and dedication towards business”.Clearly, we can’t yet see the full > picture. > The device is a shameful hot mess > And then of course, we come to the phone itself. The Freedom 251 > features a 1.3GHz quad-core processor with 1GB RAM, has a 4-inch qHD > IPS display with a 3.2MP rear cam and a 0.3MP front cam. It’s powered > by a 1450mAh battery and has 8GB internal storage (expandable up to > 32GB). But what the ads and promotional material don’t tell you is > what the phone is actually like in your hand. And, unfortunately, > reports coming in paint a foreboding picture. > Hindustan Times published the first review we saw today, which > indicates the device is a jumbled mishmash of other existing phones. > The screenshots of the Freedom 251’s UI clearly show ripoffs of icons > from iOS. Apple’s Photos, Safari, and Email icons are sitting pretty > beside standard Android Lollipop fare. That’s a copyright infringement > lawsuit in the making. In addition, HT claims the trial device they > were sent by the company actually featured branding of an entirely > different company, Adcom. Even more bizarre, the brand name was > whitened out. Adcom is an IT product importer from Delhi, and they say > they have nothing to do with Ringing Bells. So what exactly is going > on then? No one can be sure, but just take a look at this. > Here’s an official photo of the Freedom 251, where the phone looks > suspiciously like Ringing Bell’s own Smart 101 > Here’s the ad they printed in newspapers > View image on Twitter > View image on Twitter > Get Twitter app > Raju (screen name: rajupp) > It’s worrying to note that the images of Freedom 251 on website and > newspaper ad are completely different > 11:33 AM - 17 Feb 2016 > Reply Retweet 18 Retweets Like 19 likes > And here’s a photo from the guys at NDTV, complete with pre-whitened > branding. Notice how the phone has two different looks in their ad > campaign? And…..hold on a second, what’s this? Another doppelganger? > In fact, even the official Twitter handle for the Freedom 251 here > features instead a profile pic with the Ringing Bells Smart 101. Want > to know how I can be sure of that? It's right here on the Smart 101's > product page. They didn't even bother removing the text that says > "Android 5.1 Lollipop". It's so laughably and utterly stupid at this > point, that I shouldn't be surprised anymore, but of course there's > more to add to building pile of manure. On a third website, dedicated > solely to Freedom 251 updates, the company lists the reasons one > should buy the phone. And, of course, that gloriously exaggerated list > is coupled with yet another picture of the Smart 101. > Of course, that's okay in this context because Ringing Bells has a > disclaimer on the website. > Really, what on earth is going on? > The company is wholly unavailable for comment > Unfortunately for everyone with questions out there, the media might > have had answers a few hours ago, but we were collectively denied. > India Today attempted to talk to an exec in person and were turned > away at the door, the guard stating the office was empty. On launch > day. Additionally, he seems to believe the Ringing Bells office in > Noida has been occupied for the last seven months. That’s strange > because his story puts workers in the Bells office in August, a month > before the company was even officially registered. In fact, no one has > been able to get so much as a peep out of the entirety of the company; > not Goel himself, and none of his supposed employees. > And despite all that, the launch event was delayed from 7:00 pm to > 9:00 pm. with questions being accepted only at 10 pm. For those of you > still willing to drop money on this phone, bookings for the Freedom > 251 will be open at 6 am tomorrow, February 18 here. > Source: > http://www.dnaindia.com/scitech/report-the-freedom-251-fiasco-what-the-hell-is-going-on-2178927 > Thanks. > > On 2/18/16, Bhavya shah <bhavya.shah...@gmail.com> wrote: >> Ringing Bells Pvt Ltd, a hitherto-little-known Noida-based company, >> has suddenly caught people's popular imagination after it announced it >> would launch Freedom 251, an Android mobile phone priced at Rs 251. >> ringing-alarm-bells-could-free… >> reporter-diary-2016-02-18 >> “ >> The bill of materials for a product like this -- the specs that are >> being claimed -- is approximately USD 40. That is about Rs 2,700 per >> phone. >> ” >> - Pankaj Mohindroo (President) >> Ringing Bells Pvt Ltd, a hitherto-little-known Noida-based company, >> has suddenly caught people's popular imagination after it announced it >> would launch Freedom 251, an Android mobile phone priced at Rs 251. >> The company says that the phone, which carries budget-phone >> specifications, will be shipped to buyers by June. The company's >> website, which opened a purchase window this morning, says it has >> suspended sales for now after getting 6 lakh orders. >> But many things have looked suspicious from the get-go: the phone >> looks eerily similar to Adcom Ikon 4 , which retails for about Rs >> 3,600. Reviewers from several publications and tech websites that the >> test unit had had its branding whitened out . Others said their test >> units didn't work; everyone pointed out that software's look-and-feel >> resembles the iPhone operating system. >> Further, the Indian Cellular Association, the apex body of mobile >> phone manufacturers, claims that the bill of materials for a phone of >> this specification comes to around Rs 2,700, and has raised concerns >> that the phone doesn't pass the smell test. >> The ICA even wrote to the Telecom Industry warning that the government >> keep its distance from the phone company -- which claims to be >> furthering the cause of Make in India -- following which Defence >> Minister Manohar Parrikar did not show up at the launch event despite >> being scheduled to. >> On his part, Ringing Bells President Ashok Chadha, in an interaction >> with media persons last night, put out some fuzzy numbers: saying that >> the company will save Rs 400-500 each by manufacturing in India (and >> benefiting from a duty differential), using economies of scale and by >> selling only through the online route. >> In an interview with CNBC-TV18's Nayantara Rai, ICA President Pankaj >> Mohindroo explained what was wrong with Ringing Bells' math. >> Below is the interview transcript on CNBC-TV18. >> Q: We have seen the company actually explain on how it is possible to >> price the phone at Rs 251. He talks about passing on 13.8 percent duty >> to the benefit to the customers saying this is the Make in India duty. >> Now we understand there is a differential pricing for imported phones >> and those that are made in India which is 13.8 percent in effect from >> March 1, 2015. The question I want to ask you is then why are all the >> manufacturers anyway passing on this benefit to customers. For him it >> works out to be Rs 470. For other manufacturers it will be a lot more? >> A: It doesn't add up like that. The bill of materials for a product >> like this -- the specs that are being claimed -- is approximately USD >> 40. This cost is very optimised, very sharp and without any margins >> added. So, that is about Rs 2,700 per phone. On top of that, you add >> import duty or manufacturing duty, value added tax (VAT), retail >> margins, distribution margins. And let me tell you the mobile phone >> industry is extremely cut throat. It is extremely optimised, retail >> margins are very small, 1-3 percent. Distribution margins are very >> small, 1-3 percent. There is no place to hide. Nobody can keep a >> margin up his sleeve. It is absolutely cut throat, dog eat dog >> industry. >> There is a differential duty margin [when you manufacture in India as >> opposed to importing] and this is not something we have to learn from >> a gentleman like this. There is a 11.5 percent duty differential which >> translates into Rs 60 for a Rs 700 phone and Rs 7,000 for an Apple >> product. So, there is a duty differential and it is being passed on to >> the consumers. But look at the sums, look at the dynamics of the bill >> of the material which I have told you. This phone should be costing Rs >> 4,000. >> Q: Ashok Chadha is saying if you look at the economies of scale they >> will save an additional Rs 530, he is going to save another Rs 460 by >> not getting into traditional advertising and marketing and saying he >> only has to back up and cover up Rs 550, which will be done from the >> marketplace. You have raised alarm bells to the telecom ministry... >> A: I am leaving this to the court of the media by giving facts. I gave >> you the numbers, when I said USD 40 bill of material -- USD 40 is bare >> bone, very large volume economy numbers. I am not talking about any >> margin, I am talking about the bill of material. >> So, if you are talking about normal trading, which is a very economy >> brand this phone should sell for Rs 4000. If you are talking about a >> job lot being sold in the e-commerce type of business, it should be >> about Rs 3500. >> Q: I want to understand why are you so alarmed? If you look at Ringing >> Bells explanation he seems to have it all covered. Sometimes things >> are too good to be true but he does explain it. He is going to pass on >> 13.8 percent duty, he says he is going save additional Rs 530 from >> economies of scale, he is going to save Rs 460 by not getting into >> traditional marketing and says then I am only left with Rs 550 which >> he will do with his market place. So, he is going to get probably apps >> or get other people to sell on his phone. Are you alarmed because >> people will buy his phones and not the phones of all traditional >> companies? >> A: I am saying USD 40 bill of material with very large volumes of >> millions of phones. That is the starting of the building block, where >> is this duty coming into place? >> Q: What happens when he has to make deliveries? >> A: I am placing the facts in front of you. We have no vested interests >> in anything. We are promoting the nation's manufacturing, we are >> promoting the industry. If there is a person with a business model >> like that we would love to promote it. We have spoken to all the >> operators, there is no hidden subsidy in this. There is no bundling, >> which is happening with any operator. So, something where the bill of >> material is Rs 3000, how is he undercutting it, that is the question I >> want to ask. >> Q: Why is it that you all have made a representation to Ravishankar >> Prasad the telecom minister explaining all of this and then saying >> that it is perhaps not prudent for a senior minister to attend the >> launch. We do understand that defence minister Manohar Parrikar was >> supposed to attend the launch, his name was there on the invite as >> well and then post your letter and conversations with the telecom >> minister, we did not see Parrikar there at the launch yesterday. So, I >> want to ask you why is it that you are association was worried? If >> there is somebody who is trying to make false claims that person would >> be brought to justice. >> A: Absolutely, that is the thing we pointed out to the minister. We >> have said that we do not understand this business model. It is beyond >> us, what is the business model. It looks extremely suspicious. In >> these circumstances, if you think we are worth anything, we are >> proposing to you that there should be no direct or quasi endorsement >> from a government leader for this company till the air is clear. >> Source: >> http://www.moneycontrol.com/news/business/ringing-alarm-bells-could-freedom-251-befraud_5550541.html >> -- >> Warm Regards >> Bhavya Shah >> Using NVDA (Non Visual Desktop Access) free and open source screen >> reader for Microsoft Windows >> To download a copy of the free screen reader NVDA, please visit >> http://www.nvaccess.org/ >> Using Google Talkback on Motorolla G second generation Lollipop 5.0.2 >> Reach me through the following means: >> Mobile: +91 7506221750 >> E-mail id: bhavya.shah...@gmail.com >> Skype id : bhavya.09 >> > > > -- > Warm Regards > Bhavya Shah > Using NVDA (Non Visual Desktop Access) free and open source screen > reader for Microsoft Windows > To download a copy of the free screen reader NVDA, please visit > http://www.nvaccess.org/ > Using Google Talkback on Motorolla G second generation Lollipop 5.0.2 > Reach me through the following means: > Mobile: +91 7506221750 > E-mail id: bhavya.shah...@gmail.com > Skype id : bhavya.09 > -- Warm Regards Bhavya Shah Using NVDA (Non Visual Desktop Access) free and open source screen reader for Microsoft Windows To download a copy of the free screen reader NVDA, please visit http://www.nvaccess.org/ Using Google Talkback on Motorolla G second generation Lollipop 5.0.2 Reach me through the following means: Mobile: +91 7506221750 E-mail id: bhavya.shah...@gmail.com Skype id : bhavya.09 Search for previous postings at: http://www.mail-archive.com/mobile.accessindia@accessindia.org.in _______________________________________________ Mobile.accessindia mailing list Mobile.accessindia@accessindia.org.in http://accessindia.org.in/mailman/listinfo/mobile.accessindia_accessindia.org.in to post send mail to: mobile.accessindia@accessindia.org.in Disclaimer: 1. 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