The Indian Cellular Association (ICA) has raised concerns over the launch of a smartphone at a price as low as Rs 251, saying the rate could not be below Rs 3,500 even after a subsidised sale.
The ICA has written a letter to Telecom Minister Ravi Shankar Prasad to get into depth of the issue. The ICA also said it was not appropriate for the senior political and government leadership to be present at the launch till the air around this is cleared.
“The bill of material 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 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). “There is also no visible mobile operator subsidy involved in this,” he added. Mohindroo said it would be advisable that the Central government officers get into the depth of this