Expressing concern over the launch of a smartphone at price as low as Rs. 251, mobile industry body ICA has written to Telecom Minister Ravi Shankar Prasad to get into depth of the issue, saying the rate could not be below Rs. 3,500 even after a subsidised sale.
(Also see: Freedom 251 full specifications)"For your kind information, the bill of material (BOM) value for a product like this when sourced from the cheapest supply chain cost approximately $40 (Rs 2,700). "And this, when translated into retail price after addition of applicable duties, taxes and with distribution and retail margins would be at least Rs. 4,100 while the product is being sold at Rs. 251," ICA National President Pankaj Mohindroo said in the letter.
He further added that even if the product is sold at lower margins in an e-commerce type subsidised sale, the final consumer price cannot come below $52-55 (about Rs. 3,500-3,800).
(Also see: Freedom 251 in pictures)"Further, there is no visible mobile operator subsidy involved in this, which in any case is not the way the Indian mobile market operates," he added.
Mohindroo said it would be advisable that officers from Deity get into the depth of this and ICA will provide any technical assistance, if required.
"We are bringing this to your kind notice, so that a scenario does not arise in the future, where the nation, the government of India, industry and trade are seen in a poor light," the letter added.