The launching of $7 and branded as Freedom 251 smart phone in India has made the mobile crazy customers in one of the biggest global markets go for booking in a way that has crashed site of the company within 6 hours on the very first day of its launching. Whereas some of the brains in telecom industries are doubting intentions and credentials of the company as they have no infrastructure to manufacture these phones in India. Well that could be a different story but my friend has come up with the calculation which suggests that the company is going to earn millions even if they fail to deliver and refund the booking amount to their customers later on after four months. Here is the calculation:
Given the numbers of booking/sec= 1600000
Cost of single unit of phone: Rs.291(including Rs40/- as shipping)
The first booking lasted =6hrs 15 min=22500 sec
booking on first day= 291x600000x22500=392850 cr
That means on the very first day the company booking was more than the turnover of Reliance Industries, the biggest Indian company during 2014-15
Even if there is no further booking, the company has received an amount of Rs.392850 cr and on a very conservative rate the company will earn interest @4% amounting Rs. 43.5 cr per day. In case the company decides to refund the amount 392850 cr which is more likely after four months, the company will be richer by 43.5cr x 120= 5166 cr. Even if the promotion cost and other incidentals are deducted the earning of this company without doing anything will be around 5000 crores. Well it happens only in India as the ambitious Make in India project could subsidize the cost but that’s a big deal
