May 4, 2009
"Shanzai": the black market cell phones from China
Interesting insight from The New York Times last week on the booming industry of counterfeit cell phones in China. After years of making fake luxury bags and cheap DVDs, they are capturing market share from the world’s biggest mobile phone makers.
Five years ago, there were no counterfeit phones,” says Xiong Ting, a sales manager at Triquint Semiconductor, a maker of mobile phone parts, while visiting Shenzhen. “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.”
Technological advances have allowed hundreds of small Chinese companies, some with as few as 10 employees, to churn out what are known here as shanzhai, or black market, cellphones, often for as little as $20 apiece.
Although shanzhai phones have only been around a few years, they already account for more than 20 percent of sales in China, which is the world’s biggest mobile phone market, according to the research firm Gartner.
They are also being illegally exported to Russia, India, the Middle East, Europe, even the United States.
Read full article.
The Permanent Link to this page is: http://www.textually.org/textually/archives/2009/05/023463.htm
