Why Freedom 251 smart phone could be a sham !

India is land of unthinkable… be it religion, politics, education or technology.

Recently we saw something unimaginable – a Rs. 251 Smart phone. Thats roughly 4 USD !!
This is not the first time India has tried to bring technology to public at unimaginable price. We already saw a failed attempt by previous government in trying to bring Aakash Tablet priced at around Rs 1100. That was approximately 4 times costlier than Rs. 251 smart phone.

We know from past failures that such a low priced tablet was not possible.. Take an example of Raspberry foundation which is trying to develop low cost computers. Their computer with 1GB RAM and 1GHz processor costs $35! and it has no screen! Just plain development board !

So how can a gadget with roughly same specifications be now sold at such ridiculous price. At this price, people would probably buy phone in the unit of ‘Kilos’. It is simply too good to be true.

It could be a very well planned sham !

Is it e-Waste from some country ?
One possibility is that this could be e-Waste of some developed western country. We know that with growing environmental concerns, some of the developed countries who have strict environmental regulations are finding it difficult to dispose off their e-Waste.
It is possible that one of those countries is trying to dispose its e-Waste. So they might be giving it for free OR in-fact could also be paying something to take away that e-Waste from their countries.
Some smart guys are importing that, getting money and then re-assembling it to sell in Indian market. And in the process, making some extra money also.
Thats the only way it could become affordable to sell a smart phone at Rs. 251/-

It could be well planned corporate fraud !
Another possibility is that this is a well thought fraud! Yes you read it right – well planned corporate fraud
The company right now is taking orders and are promising to deliver the phone in next few months. Based on the orders they receive, they could apply for a big loan. After few months they may file bankruptcy or default on the loan — just like Mr. Kingfisher did. We have seen how big corporations have defaulted on their loans.

In my opinion the current government should be cautious and should keep a close eye on this. This could potentially snowball into another controversy around ‘Make in India’ about how the government has made doing business easy but has left too many loop holes for big corporations to exploit.

If I were you, I would just wait and watch and believe only when I see myself.

The opinions expressed here are my personal opinion. I am neither a ‘bhakt’ nor an ‘aaptard’ ..  just another blogger trying to finish this blog before my son wakes up !

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