Counterfeit Chinese Phones - a Curse for Naive Consumers

The greatest challenge faced by the industry today is the rapid growth in use of the Chinese mobile phones. It offers somewhat similar appearance as that of original branded phones but at a much cheaper price.

Analyzing the picture with an economic perspective gives rise to several other ventures associated with the Chinese replicas. We all are aware of the fact that branded cellular phone manufacturing companies have so far made numerous investments in multiple aspects in Pakistan’s telecommunication sector.

The Foreign Direct Investment (FDI) in Pakistan was declined by 31.2 % in the year 2008-2009. The Foreign Direct Investment in the telecommunication sector in this year is declined by 43.3% and reached to US$ 815 million. If we examine the track record of the foreign investments in the sector, we would come to know that there was a continuous decline in numbers as the overall FDI fell from US$ 5,410 million in the year 2007-2008 to US$ 3,720 million in 2008-2009*. This unremitting decline in the foreign investment particularly in the telecom sector has given rise to some serious concerns for the economists of the country.

The Chinese knockoffs may offer the similar appearance that of the branded phones but several questions are being raised on the quality and reliability of the cell phones. People may find these cell phones affordable for their pockets but they start complaining about the phone’s performance just after a few months of the purchase. The few frequent complaints regarding the Chinese phones are about the weak battery, low standard camera, poor sound quality and internet connectivity. As no legal industry standards are followed while manufacturing fake Chinese mobile phones, these mobile phones pose a serious health threat due to excessive radiation and their low-grade batteries can explode anytime.

Furthermore, People face extreme inconvenience at the time of warranty claim of the China phones. Fake mobile phones do not carry authentic warranty. If the fake phone’s hardware malfunctions, there’s no other choice but to dispose off the phone because the parts are not available in the market.

To exacerbate the situation, cheap Chinese cell phones may be a great hurdle for the law enforcement agencies as these phones facilitates the negative forces because they lack the International Mobile Equipment Identity (IMEI) number, which is a unique code, allotted to every mobile device and used to trace or block the device as and when required. On the other hand, more than 100 Chinese mobile phones possess a same IMEI number and blocking of one such device may result in the blockage of several mobile phones at the same time; meaning it is impossible to locate or block the mobile device.

Amongst various factors responsible for the constant decline in the foreign investments of the country, a mounting trend of Chinese knockoffs of the branded phones could be a cause of deteriorated situation.

The greatest fascination of cheap prices of China phones is a consequence of an organized smuggling of these devices being supported by the various local bodies. This illegal smuggling of mobile phones is not only threatening for the law enforcement bodies but also imposing a great challenge for the country’s economy as this attempt is disturbing the legal import of the genuine mobile phones.

In one aspect when the consumers are deceived by the unauthentic and unreliable Chinese phones that results in a long lasting trouble and inconvenience; on the other hand, their business is discouraging the foreign investment in the telecom sector that impose an alarming threat to the Pakistan’s economy.

In order to endeavor against the mounting challenge, the government of Pakistan particularly the concerned authorities like PTA and CPLC should develop a strategy to denounce the sale of Chinese mobile phones in the country. Also, it is a high time for consumer rights bodies like Consumers Association of Pakistan to take action against the supply of substandard and low quality products in the market.