coolrajiv 1 Report post Posted October 8, 2007 Source - http://www.telegraphindia.com/1071008/asp/...ory_8408565.asp Handsets to breach Rs 500 price barrier Calcutta, Oct. 7: Mobile handsets can’t get cheaper than this: come Diwali, a Calcutta-based company hopes to break the Rs 500 price barrier. Xenitis Telecom Ltd, owned by Bengali entrepreneur Shantanu Ghosh, plans to launch its basic GSM handset for Rs 499. Ghosh, who owns IT peripherals producer Xenitis Infotech and two-wheeler maker Global Automobile, is setting up a mobile handset factory at Hooghly in Bengal. At present, the cheapest GSM handset retails for Rs 1,200; Reliance Communications, the Anil Ambani-owned CDMA operator, offers handsets at Rs 777. Xenitis’ ultra low-priced handset will, however, be imported from China in a semi-knocked down (SKD) format and assembled here. Ghosh reckons it is possible to manufacture a very basic workable handset at such a low price. “Mobile handsets are available at $10-15 in Chinese and south Asian markets. We have brought samples here and are testing them now. So far, they are working well,” Ghosh told The Telegraph. Ghosh will sell the handsets under his Xtel brand name, but his company also aims to supply products to established players. “It is difficult to build a brand and fight big companies like Nokia. Instead, we want to be a contract manufacturer for local players,” he said. The Indian mobile handset market is projected to grow to 90 million units by the end of 2007. The Indian Cellular Association, the apex body for handset manufacturers, estimates that the country will manufacture 50 to 60 million handsets this year and the number can grow to 250 million units soon. Xenitis will be training its guns on the local brands of tiny players who import cheap handsets from China. “We will start with SKD kits but will graduate to basic manufacturing in the next one to two years,” Ghosh said. Initially, it plans to produce 2 lakh handsets a month. Ghosh claimed that a number of GSM mobile operators had evinced interest in sourcing handsets from his company. “Mobile telephony operators are going deep into rural India with bundled offers of connection and handsets. The only way to penetrate those regions is by ensuring affordability,” he said. The company expects to tot up a turnover of Rs 150-200 crore from the telecom business this year itself. The unit is coming up next to Xenitis Infotech’s factory in Hooghly. In April, the company signed a memorandum of understanding with Singapore-based Longcheer Technology to design and manufacture mobile handsets. Share this post Link to post Share on other sites
@ksh@T 20 Report post Posted October 8, 2007 expect only classic types thats it Share this post Link to post Share on other sites
Honest 836 Report post Posted October 8, 2007 ^^^ What more can we expect at this price of Rs.500/- my dear friends. Wait for sometime and cell operators will offer us free handsets like these on purhcase of a new connection, without any extra charges. Regards. Share this post Link to post Share on other sites
Sadikk 301 Report post Posted October 8, 2007 Well i tried hard to do this in past, when NOKIA 2280 board with screen was offered in 8$ to me, but lack of investment and knowledge in importing hold me back. I still believe 999 rupees handsets from nokia will do better than these 499 classics like handsets. If anyone out there ready to invest and take headache of legal things by reliance and nokia, it can happen. can give 100% profit in YoY basis. same goes with data cards. Share this post Link to post Share on other sites
city02 63 Report post Posted October 9, 2007 What more can we expect at this price of Rs.500/- my dear friends. Wait for sometime and cell operators will offer us free handsets like these on purhcase of a new connection, without any extra charges. hmm ... sounds a bit like the Rs. 501 monsoon hungama? free/subsidised handsets only work with contracts/lock-in on postpaid globally Share this post Link to post Share on other sites
Greens 21 Report post Posted October 12, 2007 Without a properly established service network these handsets are going to be a big flop. Share this post Link to post Share on other sites
ashoksoft 83 Report post Posted October 12, 2007 Very true greens ... but to an extent ... i see that many of these handsets actually last their life - two to three years ... some of the handsets that I had got from China long ago and in the price bracket of INR 1200 - 1500 are still functional without any major hiccups ... lets see what comes out of the bengali babu's stable ... hmm sadik ... I guess things are getting interesting there .. a 999 nokia handset ... hmm ... 8 USD at 40 INR works to 320 INR + 250 Battery + 200 Body ... so thats about 770 INR and well on a sale value of 999 you still have a good margin ... sounds nice re. and phew ... I guess this is the first post where 3 mods have posted one after the other .. hehe cheers karki Share this post Link to post Share on other sites
mgdelhi 192 Report post Posted October 12, 2007 Well the margin looks lucrative if u r a one man shop, if u actually go in distribution, 50% of MRP goes on distributor+dealer+retailor's margin and cst and VAT and freight, ur office rent (even if u own ur office but still there is value), godown rent, office running cost, staff salary and other logistic expenses.. I know that coz I am running a business of import+distribution. It is not for mobile or electronics though where vat is just 4% but still u will not get 999 - 770 = 229 rs in ur pocket. Share this post Link to post Share on other sites
ashoksoft 83 Report post Posted October 12, 2007 True ... it works best for a one man shop - or retailership ... if you plan to make it a proper distribution channel - it all better be yours Share this post Link to post Share on other sites
