Indian company delays shipment of world's cheapest smartphone again

Some argue that it is a Ponzi scheme citing the exceptionally low price


News Desk June 30, 2016
It seems the Ringing Bells Freedom 251 delivery saga is not going to end soon PHOTO: REUTERS

Indian smartphone company Ringing Bells has delayed the shipment of world’s cheapest smartphone, Freedom 251, once again.

Earlier on Monday, Ringing Bells, the manufacturer of the INR251 (less than $4) 4-inch smartphone, announced it will start shipment from June 30.

“We are ready with nearly 200,000 ‘Freedom 251’ handsets. We will start delivery from June 30,” said Mohit Goel, the founder, and CEO of Ringing Bells.

However, it seems the Ringing Bells Freedom 251 delivery saga is not going to end soon. Just a day before the scheduled delivery, the company postponed the delivery date once again and said the shipment will begin from July 6.

The device was initially planned to be delivered by mid-February. However, the company could not meet the huge demand. Ringing Bells claims to have received over 70 million registrations before the company’s payment gateway crashed.

The company also said they are trying to meet Indian Prime Minister Narendra Modi for garnering his support under the Make in India initiative.

Goel said they have prepared a letter requesting a meeting with PM Modi to pitch their case as a domestic smartphone maker that wants to contribute towards ‘Make in India’ initiative.

“We are planning to organise a launch event in the capital on July 7, a day after starting the delivery,” Goel added.

Indian company briefly sells $4 smartphone before website crashes

“We learned from our mistakes and decided to go silent till we come out with the product. Now we have a 4-inch, dual-SIM phone ready for delivery. I feel vindicated,” Goel told IANS.

After announcing that it will start delivering handsets from June 30, the company said it will hold a lucky draw to give away Freedom 251's.

Confirming the development, Ringing Bells CEO told The Indian Express in a telephone conversation that they will organise a media event soon to announce the lucky draw.

'World's cheapest smartphone' to be launched in India

While the controversy surrounding Freedom 251 is yet to be settled, the company is already planning to launch the world's cheapest 32 inch Led TV with a price tag of just INR10,000.

“These will be the cheapest television sets in India and will be available for less than Rs 10,000. Within two days, the delivery would be made and we will sell them online,” Goel said, adding the company currently has 100,000 such pieces in stock.

Some argue that Ringing Bells is a Ponzi scheme since and it is not possible to manufacture a smartphone at such low a price. A case has also been registered on the complaint of BJP leader Kirit Somaiya under section 420 (cheating) of the Indian penal code. An FIR was registered in Noida police station against the company’s CEO Mohit Goel and president Ashok Chaddha.

The company has already changed its delivery date for the world’s cheapest smartphone from 28th to 30th. Whether the phone will be  delivered or not, we’ll have to see.

This article was originally published in The Indian Express

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