Abu Dhabi moves against fake Chinese cell phones

When Bassam Qudsi asked about the price of an iPhone handset at a mobile phone shop in Abu Dhabi, he was bracing for a tough bargain. But he was shocked to learn the price was less than 20 per cent of what he had expected. His surprise soon dissipated when he was told that the handset is Chinese.

"It looks the same. It is a clone of the real iPhone. I had thought I got the bargain of my life but I was then told that the phone is not genuine but a Chinese version, which is far inferior in quality," he said.

Like in other countries, China has invaded the UAE's lucrative mobile phone market, one of the fastest growing mobile markets in the world, as it had done with its cheap watches, radio and TV sets, and other electronics.

Although its mobile handsets are much cheaper than other mobile phones, it has introduced some innovative features to lure customers, including offering two or three batteries in one package, large headsets, TV and radio facility, and developing handsets that take two or three sim cards.

Authorities in the UAE had made no move against such dumping of large, cheaper quantities of mobile phones on the grounds the country is an open and free market. But they have just decided to act after receiving complaints from mobile phone dealers that clone Chinese handsets and accessories are now flooding the market in violation of the existing intellectual property laws.

"Chinese products that are a copy of the known international mobile phone brands have recently flooded the market here. It was like an offensive by Chinese companies because such products mushroomed quickly," said Mohammed Jalal Rahid, Manager of AMT, one of the largest mobile phone dealers in Abu Dhabi.

"What we see now looks like a counter-offensive by the authorities here. We have received a notice from the Ministry of Economy not to deal in any Chinese brand that is a clone of known mobile phone brands."

Mobile phone traders on Defence Road, the hub of such business in the capital, said there had been a surge in random raids by Ministry of Economy inspectors against cloned Chinese handsets, batteries, chargers and related accessories.

The inspectors, who now pay surprise visits to Defence Road shops on a daily basis, have confiscated millions of dirhams worth of Chinese mobile phones and associated products carrying the name of such famous brands as Nokia, Samsung, Motorola, Sony-Ericsson and other phone manufacturers.

"All Chinese mobile handsets that carry the name of those brands or have the same design are no longer allowed here," said Muhannad Ahmed, another mobile phone dealer. "We have information that the ban will soon be extended to Chinese mobiles that do not have the 'made in China' label."

The bulk of Chinese mobile phones marketed in the UAE are imported through Dubai and large quantities are re-exported to nearby Gulf states and other countries. Despite their inferior quality and the absence of any authorized local dealers, demand for such handset in the UAE has remained strong given their cheap prices, which could retail at just Dh200.

"When you think of the high per capita income in the UAE, you will see why such phones find easy market here," said Imad Hariri, another dealer.

"But the problem is that the quality of those phones is really low and the language, mainly Arabic, is bad. After using them for a few months, most of these handsets go out of order while others stop charging. Yet they remain attractive because of the price and the innovative features introduced by some Chinese manufacturers, including the loud music player and dual simcard."

Besides handsets, Chinese phone batteries, chargers and covers have filled up the shelves of cellular phone shops, prompting authorities to take action. Over the past few months, inspectors have been seen confiscating thousands of such items at the more than 100 mobile phone shops on Defence Road.

 

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