Freedom 251 Smartphone - Is Fraud?

Yesterday, an Indian company has launched a smartphone at the cheapest price in the world. Its price is just RS. 251. Its booking  is on its official website under "MAKE in India" project. Now, there is also news of doubts are hot. Can an Indian company sells this smartphone at the lowest price whose market price is Rs. 4000 to Rs. 5000 with same configuration.

So, first of all, I want to say. It is not a fraud. It is totally planned and on the basis of systematic calculations of revenue estimations if it will sell it on its lowest price. Suppose, I am the owner of this company and also know simple accounting. So, let me explain, how is it possible.

1st. Major Fact - Indian Population is 1.252 Billion

 Company is not selling Rs. 251 mobile to one person. It is selling to 1.252 billion people of India. Means, 125 crores Indians will buy at Rs. 251 mobile. Imagine how much sale revenue company will gain.

2nd. Major Fact - Total Lumbsum Sale Amount if 10% of Total Indian Buy it

If only 10% Indian will buy these smartphone, its total sales revenue will be Rs. 2510 Crores.

 Sub-fact 1 : If same amount will invest in share market through hedge. It will create multi-billion amount in just 4 months. And at that time, it is not difficult to give Rs. 5000 mobile just for Rs. 251 because company has Rs. 25100 from each Rs. 251.

Sub-fact 2 : If company invests same money in real estate market with this big amount only for one month. Whole real state market will come boom. With this, company can earn billions of dollars which is impossible through issuing of share and get money.

Sub-fact 3 : When we sell any product at large quantity, we get internal and external economies. So, same mobile's cost may be Rs. 100 for each, then it is not big issue.

3rd Major Fact - 4 Months Total Interest Revenue 

Company is not delivery the product immediately.It means, company will earn interest or profit on collected sale.

As per my calculation. If 10% Indians will buy its mobile. Company will gain Rs. 800 Million only interest revenue on sale amount for 4 months (Means 80 Crores)

( Total Rs. 1 value may be Rs. 101 after 4 months as per finance rule (Value of money)

4th Major Fact - Advertising Income from Pre-Installed APPs

Company will add pre-installed Apps in it. If it will add 10 apps in this smartphone. If 10% of total Indian population will click it. Company will get the advertising earning of Rs. 320 Million ( 32 Crores)

( As per Google and YouTube Advertising department, it sells 2000 views at $10)

5th Major Fact - eCommerce Income from Pre-Installed Apps

If company will install eCommerce Apps. If it is only 10 Apps. Company can earn the money of Rs. 3200 Million from it.

6th Major Fact- Interest Revenue if Smartphone will deliver after 6 months

Who will go to high court? Who will go to supreme court? If company will deliver 2 to 3 months late than actual time. This is India where is date but not justice. But company will surely deliver. With late delivery, company can earn extra interest revenue of Rs. 200 million.

7th Major Fact - As per Company's Review

Company is saying. It is getting the benefit of Tax due to MADE in India instead of import. It has cut the distribution margin and retain margin due to direct sale of product in the market. That is reason. This mobile is so cheap.

So, total above revenue. I have estimated on the basis of 10% of total Indian population but if 20% population will buy, you can estimate the revenue. On this basis, I can say, it is not fraud. I am always with the MAKE in India project.

( Important Suggestion:

1.  Govt. of India is responsible for security of this big investment of hard earned money.  Still 60% people are under poverty line. All are dreaming this smartphone. Govt. of India should inspect this whole matter very seriously. 

2. If company is unable to deliver after 3 months, it must return the advance money with 7.5% p.a. interest. If it is not able to do this, its property should sell in the market auction. Supreme court must make the law for such companies who show such Ads.)

 3. It is India. We are Indians. If we can give everything for love, we can also also know to fight for truth for life.

4. There is also big numbers of cheaters, scams and frauds in India. Govt. of India's inspection department should audit this company's plan.)

5. World know- Biggest Cheaters are the MNCs. They open the branches in each country. They spoil the small domestic business. They create monopoly. They sell only zero technology products with huge profit. They do fake advertising everyday in newspapers, TVs and on websites.

6. As per science of Selling, any one should sell, if he or she has the product for selling. For example, I have right to sell my book, if I have the quantity of books in my stock. Otherwise, I have no right to sell. Here, I am sharing my eCommerce business experience. One day, A customer has bought 34 books of same writer. I was only 8 books. I have taken the order by taking advance payment of Rs. 2000. Now for rest 26 books. I called different publishers. But I have succeeded to get only 8 more books. Still, I need 16 books. So, my customer was demanding 16 more books. Now, I had requested him to return his money or I suggested to give other writers' book. He was saying me cheater. I accepted. Yes, I am cheater. It was the time for me like heart breaking when some was saying cheater just on my mobile and I accepted it. He was ready to get other writers' book. So, issue was closed with sending other writers' book. 

But, I have learned great lesson from this.

1. I will never sell any product through my ecommerce. If It will not in my stock. 
2. I love honesty. So, I determine to do honest behavior with each other. 
3. If I can cheat, then everyone can cheat. It is easy to find faults in other. But it is very difficult to remove our own faults. If tomorrow company will 9-2-11. It may be also your default because you have also some greed. Like me. I had the greed. I have taken the money of Rs. 2000 when I knew, I had no 34 books of same writer in my stock. 
2. I have determined not take advance, if I have no stock. Strength of character is our real wealth. Honestly and truth makes the strength of character. Cheating, fraud and misguide will weak our soul. 

7. Before buying this smart phone, you must read my 5 rules of money which you are interested to invest.

All Technical Explanation through My Video in Simple Hindi Language

Must Watch it

Reference : Financial Management Book

Related : How to Get Money Back from Fraud?

Please write your comment. This issue has big impact on every Indian. With your discussion, we can aware everyone. Thanks. 


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Accounting Education: Freedom 251 Smartphone - Is Fraud?
Freedom 251 Smartphone - Is Fraud?
Accounting Education
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