Android system phones that sell at a fraction of the cost of big-name brands are proving popular for a Bermuda business that is finding its feet in the Washington Mall.

With smartphones ranging from $99 to $249, Direct.bm has positioned itself to fill a gap in the market, offering customers cellphones and tablets programmed with a wide variety of apps and functionality, but at a more affordable price.

The idea for the business took off when Alex Jones tried out a China-made smartphone. He thought it was quite good, but not quite what he wanted. He put it up for sale on the Emoo website, and the response was staggering.

“I was flooded with calls,” he said.

Together with a business partner he set up Direct.bm, securing a distribution contract for Leagoo smartphones. Leagoo is a brand from the Oteda Group, a wireless communication products company set up in Hong Kong in 2003.

“The ceiling for smartphone hardware is coming down,” said Mr Jones.

“There’s no real functionality difference between a $1,000 Samsung phone and one of these $200 phones.”

It took four weeks for the Direct.bm business idea to become reality with phones arriving from China and being put on sale at a kiosk in Washington Mall in February.

Interest from customers has been growing ever since.

“We’ve had a good reaction from people,” said Mr Jones, as he demonstrated some of the smartphones, including a rugged version built to handle serious knocks and drops, a waterproof phone, and a slim credit card-sized device that sells for $40.

“Our whole ethos is about selling phones at good prices.”

Mr Jones demonstrated one of the phones that has dual Sim cards — allowing travellers to easily switch in a local Sim card when they are overseas in order to avoid high roaming charges.

And its not only smartphones that the business sells, there is also a range of tablets with wireless keyboards and running Windows and Android software. The tablets are also from China manufacturers and are offered at competitive prices.

“The Windows 8.1 tablets will be popular with students,” said Mr Jones.

Elsewhere at the kiosk stall there are solar battery chargers for smartphones, cases that fit the Leagoo models, and competitively priced SD memory cards.

For peace of mind, Direct.bm offers a one-year warranty on its items.

“We will do our best to fix broken phones at a reasonable price.”

Where there is a software fault the phone will be replaced.

Mr Jones praised the idea of the mall kiosks as a way for new businesses to test the market and get started.

“We were able to get up and running within four weeks. The kiosk is a great way to do that. At the same time we can also keep our overheads low,” he said.

“We are on a mission to lower the cost of these products in Bermuda and bring in cool products.

“I really enjoy it, and I have a great deal of gratitude for the customers who have come along.”

The Direct.bm kiosk is located on the mall’s second floor, next to the International Sports Shop, and there is a Facebook page at www.facebook.com/direct.bm