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Fake handsets threaten mobile majors in India
By
siliconindia news bureau
Mumbai: The increasing number of fake handsets in the Indian market is posing a serious threat to Mobile phone majors, resulting in a considerable annual loss. While a fake of Sony Ericsson W960 is available as Soni Ericsson W960, a dupe of N95 is doing rounds in the name of N95 'g', reports The Economic Times.
Over a million fake handsets are being sold in India every month. Due to this recent trend, branded mobile makers including Nokia, Sony Ericsson and Samsung, could be losing a whopping Rs 400 crore to duplicates, resulting in an annual loss of over Rs 4,800 crore, according to the Indian Cellular Association (ICA), the representative body of mobile manufacturers, distributors and retailers.
Apart from duplicate phones, fakes of batteries, earphones and chargers are also available in plenty in India, affecting the market share of original ones. The sale is done through not only local mobile phone shops but also some specialized retail chains, who stock them discreetly.
Sourced from China and Taiwan, these duplicates don't have even half the features that they proclaim. Model name and numbering on handsets are almost similar to that of the established players.
"A large chunk of duplicate handsets are being sold in small towns. The pricing is less than that of the originals. They also claim to have features that are actually not present in the handset. So customers end up being duped," ICA President Pankaj Mahindroo told ET.
India is adding over nine-million wireless subscribers every month. Buyers in tier II towns and villages, who are driving the current wave of subscriber addition, are falling easy prey to duplicates because of lack of awareness as well as lower prices.
Every genuine handset has an international mobile equipment identity (IMEI) number, which is unique. It is printed on the phone underneath the battery and is used by the GSM network to identify valid devices. However duplicate phones are sold without an IMEI number and without a bill and warranty. Further, they don't have the ICA hologram, which stands for quality and reliability.
Over a million fake handsets are being sold in India every month. Due to this recent trend, branded mobile makers including Nokia, Sony Ericsson and Samsung, could be losing a whopping Rs 400 crore to duplicates, resulting in an annual loss of over Rs 4,800 crore, according to the Indian Cellular Association (ICA), the representative body of mobile manufacturers, distributors and retailers.
Apart from duplicate phones, fakes of batteries, earphones and chargers are also available in plenty in India, affecting the market share of original ones. The sale is done through not only local mobile phone shops but also some specialized retail chains, who stock them discreetly.
Sourced from China and Taiwan, these duplicates don't have even half the features that they proclaim. Model name and numbering on handsets are almost similar to that of the established players.
"A large chunk of duplicate handsets are being sold in small towns. The pricing is less than that of the originals. They also claim to have features that are actually not present in the handset. So customers end up being duped," ICA President Pankaj Mahindroo told ET.
India is adding over nine-million wireless subscribers every month. Buyers in tier II towns and villages, who are driving the current wave of subscriber addition, are falling easy prey to duplicates because of lack of awareness as well as lower prices.
Every genuine handset has an international mobile equipment identity (IMEI) number, which is unique. It is printed on the phone underneath the battery and is used by the GSM network to identify valid devices. However duplicate phones are sold without an IMEI number and without a bill and warranty. Further, they don't have the ICA hologram, which stands for quality and reliability.
Reader's comments(26)
1: Yes, in one way this article provide a very
good information to millions of mobile users
in India.
But at the end of the day its upto people how much they are duped or satisfied with the fake/duplicate handsets. I have more than 10 friends who are using this kind of handsets and enjoying all the features more than what I am enjoying with a 10000 bucks Nokia handset. They bought these with less than half price of my set, and with many features.
Business rule - "people want cheap/affordable/reasonable price but with numerous features/facilities."
But at the end of the day its upto people how much they are duped or satisfied with the fake/duplicate handsets. I have more than 10 friends who are using this kind of handsets and enjoying all the features more than what I am enjoying with a 10000 bucks Nokia handset. They bought these with less than half price of my set, and with many features.
Business rule - "people want cheap/affordable/reasonable price but with numerous features/facilities."
Posted by: Jackie Flown - 12:00 AM Oct 05, ' 08
2: Yes it seems India like Africa has become a
dumping ground for sub standard products why
?? :
a. The people who bring in the phones ( Traders ) have no loyalty to anyone except to make a few dollars . They cheat their own brothers,cousins etc just to sell and move some boxes.
b. The Operators do not realise that without a quality handset - airtime usage will not be generated. So why the need to always try and do cheaper and cheaper phones with no quality measures in place ?
c. The major manufacturers do not spend their big marketing budgets in Third world countries - yes they want the business from these markets and charge excessively for thier products but they do not re invest in forms of customer support and awareness programs - therefore you get people buying fakes because they do not know any better
d. Fortunately for the market there are new innovative companies that cater for mass market consumers in emerging markets . A prime example is a new brand called " Mi" ( www.mi-fone.mobi) . This company has been receiving rave reviews for offering quality,luxurious hamdsets at extremely affordable prices. We are led to beleive that they are launching soon in India.
a. The people who bring in the phones ( Traders ) have no loyalty to anyone except to make a few dollars . They cheat their own brothers,cousins etc just to sell and move some boxes.
b. The Operators do not realise that without a quality handset - airtime usage will not be generated. So why the need to always try and do cheaper and cheaper phones with no quality measures in place ?
c. The major manufacturers do not spend their big marketing budgets in Third world countries - yes they want the business from these markets and charge excessively for thier products but they do not re invest in forms of customer support and awareness programs - therefore you get people buying fakes because they do not know any better
d. Fortunately for the market there are new innovative companies that cater for mass market consumers in emerging markets . A prime example is a new brand called " Mi" ( www.mi-fone.mobi) . This company has been receiving rave reviews for offering quality,luxurious hamdsets at extremely affordable prices. We are led to beleive that they are launching soon in India.
Posted by: Charles Lovski - 12:00 AM Sep 29, ' 08
3: Its happen just b'coz of high price.
where as we can get chinies hand sets in one forth price with similar functions.
where as we can get chinies hand sets in one forth price with similar functions.
Posted by: sawan walia - 12:00 AM Sep 29, ' 08
5: Why should people go for taiwnese handsets?
Think of a situation: a branded handset in showroom sold for 30k and with very similar functions but a different name is available in richie street for 3k. Ask the people who use these handsets, they are more reliable than these original handsets. :) But there is also a problem, they are mostly smuggled goods. Only Indian government should regularise a way to get these good coming in a proper chanel. However, even if the duty is paid 3k will become 5k(max). What are these mobile manufacturers are doing they have been looting us in the name of brand. Touch your heart and say how many of you have not felt bad/cheated when the mobile prices go down after 3 months/6 months.
Some one was comparing withUSA. Please see, in US they are not charging more money for handset. They only sell the voice plan and mostly your handset comes for free. Here you pay for the handset, pay for the Voice plan in the name of deposit?
What is happening in Indian market is right. It is the duty of the government to stop smugled goods and welcome them through proper channel. But they will not do that, coz these manufacturers are will obviously stop it.
With the recent fall in economy, world's most brand concious americans have changed(or at least trying to change). We do not want such a thing happen in India. Don't go for branded, GO FOR QUALITY. That is the only solution for these kinda problems.
Think of a situation: a branded handset in showroom sold for 30k and with very similar functions but a different name is available in richie street for 3k. Ask the people who use these handsets, they are more reliable than these original handsets. :) But there is also a problem, they are mostly smuggled goods. Only Indian government should regularise a way to get these good coming in a proper chanel. However, even if the duty is paid 3k will become 5k(max). What are these mobile manufacturers are doing they have been looting us in the name of brand. Touch your heart and say how many of you have not felt bad/cheated when the mobile prices go down after 3 months/6 months.
Some one was comparing withUSA. Please see, in US they are not charging more money for handset. They only sell the voice plan and mostly your handset comes for free. Here you pay for the handset, pay for the Voice plan in the name of deposit?
What is happening in Indian market is right. It is the duty of the government to stop smugled goods and welcome them through proper channel. But they will not do that, coz these manufacturers are will obviously stop it.
With the recent fall in economy, world's most brand concious americans have changed(or at least trying to change). We do not want such a thing happen in India. Don't go for branded, GO FOR QUALITY. That is the only solution for these kinda problems.
Posted by: Hari - 12:00 AM Sep 27, ' 08
6: Mobile industry is feeling the heat now. what
were they doing when they knew that cheaper
Chinese handsets were flowing in? Too
late!
The solution is simple: Every genuine handset must carry a unique number when it is purchased and the user(customer) should be made availibity to check with the Makers website...tring, tring,............
Well! Is it the makers who is complaining or is it the Movers? If it is the Makers than there is no need to panic. the solution is already mentioned above. And If the customers are happy with their Fake Handsts who should be complaining.
The solution is simple: Every genuine handset must carry a unique number when it is purchased and the user(customer) should be made availibity to check with the Makers website...tring, tring,............
Well! Is it the makers who is complaining or is it the Movers? If it is the Makers than there is no need to panic. the solution is already mentioned above. And If the customers are happy with their Fake Handsts who should be complaining.
Posted by: s.n.khan(Resource) - 12:00 AM Sep 27, ' 08
7: I, as a Mobile Operator and Service Provider,
dealing in CDMA VAS Technology, am facing
problems in integration of services on the
Handsets as the available low cost Chinese
mobile devices are numerous in market without
having any information on User Agent
Profiles.
It becomes difficult at times to respond proper information to the effected subscribers. The service delivery to the Mobile Subscribers is going down due to these factors.
Multiple terminating SMS, Non-availability of Streaming and Video Services available on the Chipset, Non-Qualcomm certified, hence plenty of services and games do not work. What is required on the Mobile Phones are the service delivery, and viewing TV or listening to surround sound music shall not be considered as the ultimate services available on mobile.
Once Mobile Commerce will emerge, all these handsets will become useless for commerce based applications.
One should keep in mind the consequences of using these handsets. IMEI can be easily changed, hence someone can edit the IMEI of Handset and can use the mobile for unlawful / terrorist activities. Think of your situation at that time.
Rehan Shah, DGM - IT & VAS, Shyam Telelink - Sistema
(These are my personal comments and views and shall not be used for any judgment)
It becomes difficult at times to respond proper information to the effected subscribers. The service delivery to the Mobile Subscribers is going down due to these factors.
Multiple terminating SMS, Non-availability of Streaming and Video Services available on the Chipset, Non-Qualcomm certified, hence plenty of services and games do not work. What is required on the Mobile Phones are the service delivery, and viewing TV or listening to surround sound music shall not be considered as the ultimate services available on mobile.
Once Mobile Commerce will emerge, all these handsets will become useless for commerce based applications.
One should keep in mind the consequences of using these handsets. IMEI can be easily changed, hence someone can edit the IMEI of Handset and can use the mobile for unlawful / terrorist activities. Think of your situation at that time.
Rehan Shah, DGM - IT & VAS, Shyam Telelink - Sistema
(These are my personal comments and views and shall not be used for any judgment)
Posted by: Rehan Shah - 12:00 AM Sep 27, ' 08
8: Believe me, I have been using a Taiwan made
cheap handset which even has television
functions(Doordharshan) since August 2007. I
did not have single problem till now. Fake or
Branded, all depends on usage and handling!
Posted by: John Samuel - 12:00 AM Sep 26, ' 08
9: Selling of fake mobiles is ridiculous... and
ppl buying that.. cmon guys use your brain..
But i think its the Mobile Manufacturers who
need to use their brains on cutting down the
prices.. Whats the use of having so many
manufacturing plants in india... same
price... GTH Nokia and Etc etc..
Posted by: Ram Subramanian - 12:00 AM Sep 26, ' 08
10: ICA president's words indicating
that consumer's 'unawareness of duplicate' is
wrong because they know the fact that these
all are duplicate one.but the high price
imposed by giant companies for the almost
same utilities leading them to buy it.It is
sure that they know the fact because the
informations are wide spreading.
The government also responsible for this situations because they are closing their eyes towards these .
The government also responsible for this situations because they are closing their eyes towards these .
Posted by: Sharafudheen Ahammed - 12:00 AM Sep 26, ' 08
11: tell me where is all these fakes available. I
would like to buy if they are cheaper. It is
a pain to see the highly priced original
phones fails and we feel cheated when some of
the features fails.
Posted by: sofar genuine - 12:00 AM Sep 26, ' 08
12: In US, Nokia,Sony and others make different
models for each Carriers such as Verizon,
Sprint & AT&T. The Nokia model Verizon sells
won't work for any other Carriers and vice
versa. For every activation IMEI number is
required . Customer can report the stolen
phone's IMEI number to their carrier and the
stolen phone can't be activated. Carriers
should have a database of all the IMEI
numbers. No duplicate phones are sold in US
because Carrriers have a good grip on IMEI
numbers.
Posted by: Sree Kumar - 12:00 AM Sep 26, ' 08
13: It is quite surprising to see the race. The
cost of any handset is based on two things:
1. the hardware and manufacturing cost and
the manufacturer's policy to recover the
development cost. Mobile, by and large is
used by people for calling, taking calls,
sms, probably FM or media and some snaps. It
needs to be analysed why the "fake" handsets
can be sold at such low prices.
Posted by: pckulkarni - 12:00 AM Sep 26, ' 08
14: besides the duplicate /fake mobiles there is
another major category that stolen mobiles
coming in the market for sale.If one goes in
detail it will be observed that lacs of
mobile instruments/phones are stolen every
month and comes to market.The possibility of
involvement of some fake manufactures cannot
be ruled out. This will definitely give a
chance either to purchase new sets or to
purchase duplicate mobiles from the market,
as owner of the stolen mobile will think for
the cheaper alternatives.
Posted by: H.D.CHARAN - 12:00 AM Sep 26, ' 08
15: Fake Mobile are now available in all parts of
India , and it is good because
branded are highly priced look at I phone , in india it is double then the actual cost , so the companies like nokia,sony ,airtel,vodafone must understand that when phone became a commodity item, the price should be resonable
branded are highly priced look at I phone , in india it is double then the actual cost , so the companies like nokia,sony ,airtel,vodafone must understand that when phone became a commodity item, the price should be resonable
Posted by: Hariom - 12:00 AM Sep 26, ' 08
16: It all must be banned . The companies should
start to aware the People about the genuine &
fake mobiles by some aads & other statergies
by which the people knw that the diffrence
between the fake & originality.These fake
mobile have cheap prices but the accessories
are not available in the market. These fake
mobile are not durable like orginal the Govt.
should take the action against this.
Posted by: Prabhjit Singh - 12:00 AM Sep 26, ' 08
17: Hi,
Last nine month I am using 4 china mobile and to be very frank its really good and cheap in price.
Last nine month I am using 4 china mobile and to be very frank its really good and cheap in price.
Posted by: subha - 12:00 AM Sep 26, ' 08
18: It's an nice article, however I will agree
with the Mr. Sarsij Nayanam why does the
mobile manufactures release decrease the
price of the sets so often & comes up with
the new models with the less price. The
people who brought the mobile for high range
and surprised to see the same mobile costing
very less and he will notice much more
features mobile is available for the same
price, he will feel disappointed and not go
with the high range of mobiles. Next time
definitely he will go with the less priced
and the fake one, keeping the past experience
in the mind. So mobile manufacturers think as
per Customer needs.
Posted by: Srinivas - 12:00 AM Sep 26, ' 08
19: Nowdays changing a mobile is a passion that
with new technology advancement.As per market
standards the price of NOKIA and Sony
handsets etc. are too high than the dupe
mobile available on the market.Once i saw a
dupe handset it was just surprising me that
it is as of original handset with all
festures.
So customer always thinks on low price things that includes all features.Even it went bad no issue they will change.It just like use and throw ....
So customer always thinks on low price things that includes all features.Even it went bad no issue they will change.It just like use and throw ....
Posted by: Hareesha GR - 12:00 AM Sep 26, ' 08
20: although I am not the one to prmote the use
of fake mobile phones.
But, look at the larger facts - Every company is changing its models every month, in all possible segments. They charge a lot money for all the services they offer. And as an end buyer wouldn't I feel cheated if the very next month I get to see someone using the same mobile phone at a lower price and a better handset at almost equal price?
So whats wrong in it from an end user's perspective if I buy a fake mobile and pay less.
The important points to be thought over by the companies are:
1. why the prices are so high?
2. why do you change the models so frequently?
3. why do you decrease the prices of a set every month?
Think over these three points and then fight over the issue of fake mobiles.
But, look at the larger facts - Every company is changing its models every month, in all possible segments. They charge a lot money for all the services they offer. And as an end buyer wouldn't I feel cheated if the very next month I get to see someone using the same mobile phone at a lower price and a better handset at almost equal price?
So whats wrong in it from an end user's perspective if I buy a fake mobile and pay less.
The important points to be thought over by the companies are:
1. why the prices are so high?
2. why do you change the models so frequently?
3. why do you decrease the prices of a set every month?
Think over these three points and then fight over the issue of fake mobiles.
Posted by: Sarsij Nayanam - 12:00 AM Sep 26, ' 08
21: article explains the reality, the grey market
is in boom
Posted by: kishor - 12:00 AM Sep 26, ' 08
22: very good atricle
this will hlp somehow stop people to buy duplicate mobiles
this will hlp somehow stop people to buy duplicate mobiles
Posted by: rahul - 12:00 AM Sep 26, ' 08
25: the branded products are over priced, they
should be priced in such a way that it is
uneconomical to manufacture the same by
others. India is a big volume
market.Experience speaks volumes
Posted by: cedric faria - 12:00 AM Sep 25, ' 08
26: this grey market is surely going to slash off
the businesses.. as well as make the people
burn their pockets...
Posted by: ganesh - 12:00 AM Sep 25, ' 08
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