The world’s cheapest smartphone is coming to India. It’s known as Freedom 251 and is produced by an Indian company, Ringing Bells Pvt, reports Bloomberg in a recent article. The phone has two cameras (back and front) as well as a 4-inch screen. It will sell for unheard of 250 rupees (about $4)!
India is a low-income country, so brands such as Apple didn’t gain much market share with their expensive devices. Samsung and Lenovo, however, sell some of their models for less than $100.
When it comes to even cheaper, $50 models, these are unprofitable for the producers. A senior analyst at Counterpoint Technology, Tarun Pathak, thinks that the idea of a $4 smartphone is simply ludicrous.
But, Mohit Goel, managing director at Ringing Bells, doesn’t expect his company to make money of $4 smartphones. In fact, he expects it to lose money on actual devices, while making profits of marketing and advertising deals that come with them.
There’s a large potential in India. Currently, only 17% of the population has smartphones. This translates into more than 200 million users. It is projected that the user base will expand to over 500 million people in the next five years.
One thing’s for sure: Ringing Bells has got a lot of publicity after announcing super cheap price for its smartphone. And the demand is likely to outstrip supply by wide margin once this phone hits the market.