The Profitable and Dangerous Business of Counterfeit Mobile Phones

Mobile

The world is obsessed with mobile phones and so are the counterfeiters!

People with their faces down and phones in their hands have become the most common scenario nowadays. You will hardly spot anybody without these tiny gadgets. Our household chores, our office work, our social lives everything now revolves around mobile phones.

No Mobile Phones, No life, is the upcoming motto!

Unfortunately, this voracious growth of mobile phones has made this industry extremely lucrative for counterfeiters too.

According to The Organisation for Economic Co-operation and Development (OECD) report, nearly one in five mobile phones shipped internationally is a fake.

Counterfeit mobile phones pose serious risks to health and safety, service outages and loss of income for companies and governments. China is the main source of fake electronic goods, and US manufacturers are the most hit by lost revenue and erosion of brand value.

Despite the severity of the problem, nothing concrete has been done so far to understand the problem and to provide appropriate solutions for it. There is a dearth of information among the consumers about the serious consequences of using fake mobile phones.

To fight back against the problem of counterfeit mobile phones, we need to first understand the difference between a counterfeit mobile phone and a sub-standard mobile phone.

A counterfeit mobile phone is an identical replica of the original brand for all practical purposes. These phones infringe trademarks and are created with the sole intention to fool customers.

A substandard mobile phone is a category of mobile phone which might resemble an original brand but carries no explicit branding like it. It can easily be distinguished from an original.

People treat counterfeit phones as the real threat but it is equally important to address sub-standard phones also as these pose equal dangers to the users.

Let’s understand the negative impact of counterfeit/sub-standard phones on the society:

1. A lot of hazardous substances are found in these phones like Cadmium, Tin and Lead which can pose several harmful effects to the users.

2. The phoney gadgets do not undergo any extensive testing and compliance assessments before they are sold. These tests and certifications are important as they confirm that the products are safer to use.

3. The counterfeit mobile phones are made up of poor quality components and do not work properly and cause interference with the network.

4. These phones are sold without warranty and come with no exchange clauses. Therefore, the user has no recourse in case the product fails to work.

Counterfeit mobile phones have become a multi-billion dollar industry and also causing billions of losses to the economy, government and industry.

Counterfeit mobile phones create huge societal problems and hamper the health and safety of the users, environmental safety, security, quality and loss of tax revenues to the government and promote unfair competition in the market.

The government needs to take a bold action instead of traditional practices to combat such precarious practices and come out with an effective plan of action to stop them. Some of the countries have come out effective solutions which are showing good results. Our country to start adopting a strategy that best suits the requirement of our country.