Despite receiving heavy bookings after unveiling the phone in February, Ringing Bells, the UP-based company has not been able to source phones at the promised sale price, thus being forced to sell them at a heavy loss of over Rs 900 per unit. This goes against the management's earlier stance of making a profit of Rs 31 per phone.
Even, the company has withdrawn the much-touted Freedom 251 device from its website—http:www.ringingbells.co.in and the flagship smartphone is not even on display.
Moreover, serious differences have cropped up at the management level, resulting in the departure of Ashok Chadha, who had been the face of the company since it unveiled its devices in February this year.
Sources said Chadha -who was introduced as the president of the company -had a "massive showdown" with promoter Mohit Goel "over financial matters". "It is now Goel who now runs the company and Chadha does not play an active role," an official said.
Over the issue, Chadha said he was never employed by the company. "I was never working with Ringing Bells. I was always there as a consultant," he said, adding that he will provide further details by next week.
Sources said the company is facing massive problems with regards to funding of the project and procurement of devices."The procurement cost per device is around Rs 1,200, which means there is a loss of around Rs 950 on each device," a source said, adding that the company is looking at ways to bridge the deficit.