Guess! How much a smartphone like Freedom 251 would actually cost

 

"The Ministry has analysed the issue and it feels that such a device can be manufactured for about Rs 2,300," sources said.

However, they refused to say if any action will be taken against the company in the matter.

Earlier this week, Noida-based firm Ringing Bells launched the world's cheapest phone -- Freedom 251 -- priced at Rs 251, hogging limelight globally.

Indian Cellular Association, which represents the handset makers industry in India and has members like Apple, Samsung, Microsoft, Lava and Micromax, had also written to Telecom Minister Ravi Shankar Prasad.

The body said the bill of material value for a product like this when sourced from the cheapest supply chain cost approximately USD 40 (Rs 2,700).

When translated into retail price after addition of applicable duties, taxes and distribution and retail margins, the cost of the product would be at least Rs 4,100, it added.

ICA requested the Minister to get into the depth of the issue, saying the price could not be below Rs 3,500 even after a subsidised sale.

Ringing Bells, on its part, 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.

Apart from the jaw-dropping price, the company that was set up five months ago by Amity University graduate Mohit Kumar Goel, is also in the midst of controversy with analysts alleging that its maker has merely rebranded a device by its rival, Adcom.

Analysts allege that the design of Ringing Bells' Freedom 251 handset resembles that of Adcom's Ikon 4, which is already available in the Indian market at Rs 3,999.

Interestingly, most built-in app icons on the Freedom 251 seem to be a direct copy of icons on Apple's iPhone, they added.

Despite the controversies, the device has continued to grab attention from consumers. Following a heavy demand, Ringing Bells suspended bookings for 24 hours yesterday. It resumed bookings today.

Xiaomi to use smartphone chips designed in-house

 

The move would mark the first time that Xiaomi has used chips designed in-house, something analysts have said could put pressure on industry leaders such as Qualcomm Inc and MediaTek Inc, which supply the company.

The in-house smartphone application processor chips are designed for Xiaomi`s mid- to low-priced smartphone model RedMi Note series, but it is unclear how many Xiaomi is planning to make this year, said the source, who declined to be named because the information is not public.

The move comes as Beijing ploughs billions of dollars into home-grown chip companies in a bid to end China`s reliance on foreign semiconductors.

The world`s fifth-largest smartphone vendor, Xiaomi has hired 200 to 300 people to work on smartphone chip design in cities including Nanjing, Shanghai and Beijing, the source said.

"Xiaomi is copying the model of designing processor chips in-house from Apple Inc, Samsung Electronics Co Ltd and Huawei Technologies Co Ltd," the source said, referring to the only three vendors who have the ability to put self-designed smartphone processor chips into commercial use at the moment.

Beijing-based Xiaomi declined to comment when contacted by Reuters on Friday.

LONGSTANDING AMBITION

Xiaomi has long been keen on making in-house chips.

Chinese chip designer Leadcore Technology Ltd, a subsidiary of state-backed Datang Telecom, in 2014 signed an agreement with privately-owned Beijing Pinecone Electronics to jointly design 4G multiple mode chips, a stock exchange filing showed.

Beijing Pinecone Electronics is controlled by Xiaomi, the source and industry analysts told Reuters. Xiaomi declined to comment on its ties with the company.

Analysts said Chinese smartphone vendors` ambitions to design smartphone chips have become one of their major strategies to maintain market share and margins amid intense competition.

MediaTek was likely to come under pressure as it supplied most of Xiaomi`s mid- to low-priced smartphone chips, analysts said. MediaTek shipped about 20 million processor chips to Xiaomi last year, according to a report by Jefferies.

"Designing chips in-house actually costs more if the scale of smartphone vendors is not enough to support the cost of R&D," Taiwan-based MediaTek said. "In the end, they still have to outsource that to professional chip suppliers."

Qualcomm did not immediately respond to a request for comment.

Flipkart mobile app achieves 50 million installations

"Flipkart has become the first Indian app to cross the 50 million installs landmark on Google Android Play Store. This landmark was crossed in the first week of February 2016," said a company statement, adding the mobile app has beaten several other popular apps in the genres of communication, social and entertainment to reach the milestone.

 

In India, Google`s Android Operating System (OS) is the leading mobile operating system with the highest share.

According to Flipkart, app traffic comparison site SimilarWeb has ranked its app as India`s top shopping app with 47 percent share of all shopping app visits, while, including Myntra, it is 63 percent.