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People in Pakistan prefer Chinese clone phones

The following article is from dailytimes.com.pk. It is an interesting article and it doesn't really surprise me. I am sure there are many more countries where people prefer the clones. It's just so hard hard to resist when it costs so much less than the real thing and some of the clones really do a good job in pretending to be the real thing. They even come with after sales service and one year warranty. What more do you need?

Customers opting for low-cost imitation mobile phones

* Copied set of Nokia N93i available for Rs 10,000 to 12,000
* Sony Ericsson K810i’s imitation set costs Rs 8,000 to Rs 10,000.

By Romail Kenneth

KARACHI: Sales of low quality imitations of branded mobile phones, especially those from China, are on the rise and badly affecting the sales of the original manufacturers.

Imports of top mobile phone brands like Nokia, Sony Ericsson and others, equipped with advanced technology such as digital cameras and MP3 players are on the top.

These expensive mobile phones are very popular among the youth and for the last couple of years, their demand is on the rise.

Copies of these mobile phones, equipped with same functions and software are openly being sold in the market as they are they are comparatively much cheaper as against the original brands. In addition, shopkeepers are also offering warranties for these imitation mobiles, similar to that of branded set.

Pakistan imported mobile phones worth $728,283 during July–April 2006-07 of the current fiscal year as compared with $568,930 during the same period in July–April 2005-06.

Nokia is market leader as it is holding more than 50 percent share in the market; Sony Ericsson has more than 20 percent users, followed by Motorola, Samsung, LG and others. There is a separate marketplace for Chinese mobiles retailers in the Saddar electronic market and the rush of customers at these shops is the same as compared with that at shops selling branded mobiles.

The copies of popular sets like the Nokia “N series” and Sony Ericsson “Walkman series” are high in demand. A Chinese mobile phone retailer Faisal Altaf told Daily Times that those customers who cannot afford expensive sets are buying these sets.

“These sets are very popular and we are offering our customers after sales service and one year warranty,” he said.

In the mobile market, the original price of Nokia N93i is Rs 45,100 while its copy equipped with same style, features and software is being sold at a price between Rs 10,000 to 12,000.

Sony Ericsson Walkman series model K810i’s market price is Rs 28,000 and its copy is being sold at a price ranging between Rs 8,000 to Rs 10,000.

According to Nokia and Sony Ericsson, these sets are affecting their brand image and damaging their reputation among customers.

Another dilemma faced by these original brands is when unauthorised dealers import tampered mobile sets in the form of refurbished handsets, which are also called software-pirated handsets.

This practice is possible because of the fact that there is no implementation of IPR laws in our country. Shahid Khan, marketing manager at Samsung told Daily Times that Chinese copies of different expensive international brands are available in the market at a very low price, even though these sets cannot compete with the original sets.

“But still the consumer are being fleeced by shopkeepers by assurances that the copied cell phone will offer the same quality and features like the original cell phone,” he said.

After the arrival of Warid and Telenor, an intense competition has been witnessed in the Pakistani cellular phone industry and its business has risen from 1.2 million in 2002 to 52 million in 2007.

Talking to Daily Times, marketing manager for Mobile Zone said: “Sales of Chinese branded mobile phones cannot affect the sales or damage the reputation of the original brand.”

At present, there are there are six mobile phone service companies working in Pakistan in which Mobilink is on the top position followed by Ufone; Warid; Telenor; Paktel and Instaphone. According to the Pakistan Telecommunication Authority, there were around 58,399,157 subscribers all over Pakistan by April 2007.

According to an estimate, there are more than 1,75,000 mobile phone shops across Pakistan generating employment for over 6,45,000 people. Mobile phone shops include high-end franchise showrooms to small kiosks in markets and shopping malls.

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