Knockoff iPhones flood Chinese market

Apple's popular iPhone smartphone is available in numerous countries across the world, but it won't be available in China in 2009.

The Chinese market will likely get the iPhone sometime in 2010, with China Unicom, one of the country's top mobile service providers, likely to get the coveted contract.  The longer the delay between Apple and China Unicom, the less likely a possible release will occur.

ADVERTISEMENT

"Five years ago, there were no counterfeit phones," according to Triquint Semiconductor sales manager Xiong Ting.  "You needed a design house. You needed software guys. You needed hardware design. But now, a company with five guys can do it. Within 100 miles of here, you can find all your suppliers."

There are hundreds of small Chinese companies aimed specifically at developing phones known as shanzhai (black market) phones that can be made for $35 per pirated phone.  Manufacturers such as Nokia, Samsung and Motorola are startled that the black market phones control around 20 percent of the Chinese phone market.

ADVERTISEMENT
Knockoff iPhones -- image courtesy of NY Times

In a country plagued by piracy and cheap knockoffs, Apple must try and find a way to convince consumers to drop their hard earned cash on the more expensive, legitimate devices.  But the Chinese mobile market continues to explode, so it would seem somewhat foolish if Apple didn't at least attempt to offer its hit phone to the consumers living there.

However, if pricing remains an issue for consumers, then they'll just head to the black market to buy knock offs. 

Since the Chinese government seems reluctant to crack down on counterfeiters, these black market phones -- which are being shipped to Russia, India and Europe -- will only continue to control even more of the phone market.  It'll be interesting to see if manufacturers find ways to try and convince the government to take a more proactive approach towards eliminating organized counterfeiting phone groups.

ADVERTISEMENT

No posts to display