KARACHI, Oct 23: China-made cellphones of various popular brands with names spelled differently to avoid copyright and piracy laws have entered the local markets in a big way over the last six months. These cheaper copies of reputed mobile phones of world-class companies are attracting a number of price-conscious buyers.

The start-up tones also indicate spelling change. However many brands are also available with accurate spelling of branded mobiles. These cheap phones are not available in the original boxes. They are packed in a box mentioning various brand names and phone features in Chinese language.

A random market survey reveals that a China-made copy of Nokia N-73 is selling between Rs6,500-7,000, while its original version carries a price tag of Rs22,500. Similarly, Nokia 6300 (copy) sells at Rs5,800, while its original brand is available at Rs12,200. Nokia 7500 original model carries price of Rs15,200 while its Chinese copy is available at Rs7,500. Sony Ericcsson W660i (copy) can be purchased at Rs6,500 while its original brand is selling at Rs18,000.

These Chinese copies of original brands also carry a big difference in various features as well as menu display as compared with original brands. However, majority of Chinese brands are available with PDA feature (stick) that can be used by touching the screen to perform the desired function. However, these phones can also be operated with key-pad buttons.

Some of these Chinese phones also have dual and triple SIM facility. It may be noted here the manufacturers of Nokia and Sony Ericsson so far have not introduced such models with triple SIM features.

Consumers appear nervous in purchasing these cheap phones when dealers offer no guarantee and warranty. Once a customer has purchased the Chinese phone, then he is responsible for its wear and tear in case it develops any fault.

The dealers of Chinese sets say that mobile phone repair shops are set up in large number in the mobile markets, but in the absence of any guarantee and warranty one cannot expect reasonable re-sale value of these phones.

Perhaps many consumers appear more inclined to have Chinese cellphones because of their low prices and quality audio features and voice clarity. If a cellphone completes six to eight months without developing any fault, then they think that the deal is not bad.

A number of consumers also think that buying costly mobiles of known brands is a big risk as more than 6,000 cellphones are being snatched away every month in Karachi alone in which many youths have also lost their lives.

However, some consumers believe that Chinese products are considered as disposable items in Pakistan because of their low quality and Chinese phones also fall in this category.

According to statistics issued in August this year by the Pakistan Telecommunication Authority (PTA), some 68 million people have been using cellular phones in the country and Mobilink is enjoying the major share of 27.8 million, Ufone 15.3 million, Warid 11.5 million, Telenor 12 million, Paktel over one million and Instaphone 336,157 subscribers. The local market has still got the potential to reach its climax in cell phone users in the years to come.

Nokia Communication Director for Middle East and Africa Ms Yolande Pineda in reply to a query informed Dawn through an email from Dubai stated that China-made copies of some of the Nokia designs with using either Nokia or close names such as “NOKIR” brand names were being sold in Hong Kong.

“Given the scale of the infringement against Nokia’s brand and its protected product design and copyright Nokia normally takes action against the dealers found to be selling the infringing devices,” she said, adding that legal notices are sent to all of them requesting that they cease selling these models and if they do not comply further legal action will be taken against them.

She said the ongoing Nokia investigation into the sale and distribution of these phones was looking to identify any dealers selling the devices as well as identifying and taking action against the manufacturers.

In reply to another query whether Nokia had contacted the Pakistani government on this issue, Ms Yolande said Nokia operated in all the countries according to the local rules and regulations. In a case like this one if cooperation with local authorities was needed the company would cooperate with the local government and authorities.

“Mobile phones are one of many products affected by this kind of activity and Nokia is taking the necessary measures to fight any of these activities,” she said.

Munawar Azim, owner of M.A. Mobiles at Alfalah Market Abdullah Haroon Road, looks satisfied in dealing with Chinese phones as he has also displayed a small banner in his shop.

He said that some 25 per cent mobile dealers were selling cheap Chinese mobiles out of roughly 5,000 mobile shops at Abdullah Haroon Road. “One shopkeeper brings in 500 sets of various models in a month keeping in view of demand,” he added.

He claimed that he had not been facing any problems for the last six months from customers who had purchased Chinese phones because of better audio and camera quality.

Azim said that authorised distributors and even the leading cellphone players were endeavouring hard to contain the entry of Chinese goods. He claimed that all the phones were being imported and there had been no under-invoicing or smuggling.

Azad Lalani, Chief Operating Officer of United Mobile, an authorised distributor of almost all branded mobiles, said that Chinese products had eaten up two to four per cent market share so far. He said consumers were totally at risk in purchasing these items as they did not know what kind of battery was being used and that may explode.

He said these Chinese phones in their initial days function properly but later on start developing faults as these handsets cannot match the quality of branded products. “These brands are not for the long-run,” he added.

He said people appeared crazy because of watching video and listening to music at cheaper rates. “Customers know that these models lack all the genuine features of the original brands but the throwaway prices more than 50 per cent cheaper than the branded ones are actually driving buyers crazy”.

Mobile phones are being cleared with one per cent import duty and no general sales tax is charged on them. He said some 800,000-900,000 branded mobile phones were being imported every month.

According to figures of Federal Bureau of Statistics (FBS), import of mobile phones in July-June 2006-2007 went up by 13 per cent to $832 million as compared to $738 million in 2005-2006.

Mobile phones are losing value in terms of rupee with every passing day, as there is a concept that a mobile phone’s life is only 18 months. Besides, there has been a volley of new models and designs loaded with new innovative features, which lure customers to change the models frequently. There is a huge competition among the mobile phone making companies all over the world.