Friday 8 July 2016

Facing losses, maker of Rs 251 phone seeks Rs 50,000 crore from the government

NEW DELHI: As consumers wait to see the cheapest smartphone (less than $4) at its scheduled launch in the capital on Thursday, its Noida-based makers have made another pitch for the government's support to make their loss-making venture "work for millions" who don't own such a phone. According to Ringing Bells Pvt Ltd CEO Mohit Goel, he initially faced Rs 930 loss on each handset that cost him Rs 1180 and for which parts were imported from Taiwan.

"I recovered Rs 700-800 from app developers and revenue generated through advertisements on Freedom 251 website. After selling the device for Rs 251 (cash on delivery), the total loss per handset is expected to be in the range of Rs 180-270," Goel told IANS. The first batch of 5,000 'Freedom 251' devices will finally be out for delivery from July 8 and the receiver will have to pay Rs 291 (including Rs 40 as delivery charge) to get the unit, says Goel.

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