The darker side of the mobile phone industry

Jun 25, 2007 14:33 GMT  ·  By
70 percent of all mobile phones are either ullegally imported or counterfeit products
   70 percent of all mobile phones are either ullegally imported or counterfeit products

An average number of 70 percent of all mobile phones have been illegally imported or are actually counterfeit products. State management agencies have drawn attention on this problem and the toll it's taking on the telecommunications industry.

The darker, illegal side of the mobile phone industry seems to bring huge profits for traders, which explains for the raising tendency which this phenomenon has taken recently. Moreover, customers want to have the latest technology as fast as possible, many times without having to wait for it to become available at the local carriers.

Another aspect which makes this hidden market so profitable is the fact that mobile phones are often provided at lower costs than through regular processes. Moreover, this is a device which at first seems out of reach because of additional commercial costs. Still, there is also the situation when the market asks for a device which has not been officially launched on the market. In such cases, the buyer can end up paying up to 20 percent more than the official price.

The advantages that such services bring for mobile phones are the ones which encourage most the development of the illegally imported phone market. It suits them perfectly to have the occasion of owning cellular models which, otherwise, have been out of reach.

There are also some disadvantages. Such devices do not come with warranty in most cases. As their source it is unknown, the matter of trust is usually that which determines the buyer to take the risk and buy mobile phones under these conditions. Moreover, imported mobile phones might just not work with local operators and this makes such a device impossible to use.

There is also a large number of counterfeit products, which present even larger problems. Such devices or the components needed for their production are imported from China and receive stamps that ensure their authenticity. Even though most of the times they are way under the quality of the original devices, they are sold at official prices.