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Fake chinese electronics selling better than the originals!
ITWire ^ | Monday, 27 November 2006 | Alex Zaharov-Reutt

Posted on 11/27/2006 2:18:29 AM PST by glorgau

It’s a funny old world. Chinese manufacturers are copying the circuit boards and designs of products from Japan and Korea, and they’re doing it so fast that by the time the originals arrive in the marketplace, they’re seen as the fakes!

China is a land of endless factories, with many pumping out the world’s most desirable gadgets, from iPods to portable computers to digital cameras and much more. But with so much electronics smarts to hand, the pirate electronics industry is very active.

Two reports on the Internet, here and here, have indicated that Chinese electronics pirates have been very busy, churning out excellent copies of LG’s Chocolate phone right down to the glowing touch-controlled keypad and smooth sliding action.

LG took so long to get a Chinese version ready, that by the time they launched theirs into the market, the copied Chinese version had been on sale for so long that LG’s phone was seen as the fake item copying the ‘original’ Chinese version.

Another example is the PSP. Rumoured to be coming out with in a version that contains a standard GSM mobile phone, a Chinese manufacturer came out with a phone that looks very much like a PSP, although not as wide, with a stack of pirated Nintendo games thrown in for good measure to beef up its gaming credentials, even if those games have been shamelessly ripped off from Nintendo.

Plenty of other goods, both electronic and otherwise, are routinely copied in China. Everything from designer clothes, handbags, Mont Blanc and other brand pens, expensive cars, golf clubs, jewellery, sports shoes (sneakers), many modern toys including many of the robots in the ‘Robosapien’ series and plenty more including CDs and DVDs is freely available from ‘markets’ all over China, and if you know where to look, at markets in Hong Kong, too.

The cars may not be so easily accessible from the markets, indeed that’s the one place you won’t find them, but the rest of the products are much more easily transportable and copyable that it’s no surprise they are widely available.

The electronics market is just the latest frontier, with costs of electronics production so low in China. Many of these products will not officially make it out of China, but will be smuggled out to appear in stores across Asia, and in likely much smaller quantities to first world Western countries.

The piracy of electronics is nothing new. In the 90s, I clearly remember fake Panasonic DVD players marked as ‘Panesoic’, a brand name so ridiculous only the incredibly dimwitted would mistake it for the original.

But sell these products do, especially in Asia where the prices are low, few questions are asked and in many cases, the quality is actually pretty good.

Samsung is said to have been so concerned by seeing its phones copied on the Chinese market that it tracked the distribution channels back to the source and discovered the electronics guys responsible for copying their latest products.

After offering them a job with Samsung and a chance to go legitimate, they are reported to have declined the offer, saying that they were able to make more money by simply continuing in their pirate ways. What Samsung did next is not known.

Eventually China will crack down on the blatant piracy seen on its shores, but until then, the world will keep on seeing ever more creative and ever better quality copies from Chinese manufacturers, along with complete duds that should definitely be avoided and products of varying quality everywhere in between.

What a funny old world we live in, where people will do almost anything and copy almost anything to make, or save, a buck.


TOPICS: Business/Economy; Crime/Corruption
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"Free" trade.
1 posted on 11/27/2006 2:18:32 AM PST by glorgau
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To: glorgau
My father was once shown around a factory in China that was making DVD players. It was apparently an impressive scene. The Chinese businessmen showing him around were almost giggling, according to him, because they said that it took only a few dollars to manufacture the DVD player, but they could sell it for at least fifty dollars in America.

Regards, Ivan

2 posted on 11/27/2006 2:20:44 AM PST by MadIvan (I aim to misbehave.)
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To: glorgau

****Eventually China will crack down on the blatant piracy seen on its shores, ****

Come on----Give us a break here. You cant really believe that.


3 posted on 11/27/2006 2:23:30 AM PST by sgtbono2002 (The fourth estate is a fifth column.)
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To: sgtbono2002
****Eventually China will crack down on the blatant piracy seen on its shores, ****

Come on----Give us a break here. You cant really believe that.

We were applying for World patents on some of our products. We were designating countries, and when the lawyers asked if we wanted to include China, everyone burst out laughing.

4 posted on 11/27/2006 2:43:51 AM PST by Gorzaloon ("Illegal Immigrant": The Larval form of A Democrat.)
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To: MadIvan

Ha! Fifty dollars? I was in a Radio Shack yesterday and they were selling DVD players for 20 bucks a pop. The saddest thing was they were being sold under the Philco name, an old, once respected name in America, now almost forgotten.


5 posted on 11/27/2006 2:44:47 AM PST by Fresh Wind (Democrats are guilty of whatever they scream the loudest about.)
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To: Fresh Wind
Admittedly it was a few years ago.

A standard DVD player has indeed come down in price; however the same economics applies to the new HD and Blu Ray DVD players.

Regards, Ivan

6 posted on 11/27/2006 2:45:59 AM PST by MadIvan (I aim to misbehave.)
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To: MadIvan
A standard DVD player has indeed come down in price; however the same economics applies to the new HD and Blu Ray DVD players.

What those factories don't have to pay is the engineering costs used to develop those devices originally.

7 posted on 11/27/2006 2:59:36 AM PST by tje
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To: glorgau
Piracy is deeply ingrained into traditional Chinese culture, even ancient Chinese culture. Being devious and stealing/conning are viewed as being resourceful and clever, and it is complimented in both historical and modern China.

Two quick stories you can find in many kid's books in China:

1.) There was a man who found out that a certain rich man loved antique instruments. So the con man took a regular Chinese violin, scuffed it up, drew some old looking characters on it, and buried it for a year. The he dusted it off and sold it to the rich man for a fortune as an authentic antique. He is celebrated as a resourceful fellow who found a clever way to get some money.

2.) Another story is of an auction where a rare piece of raw jade was being sold. One man bid on it, but immediately another did, and then another. So the man didn't want the price to go up because he intended to carve his design in the raw jade and resell at a profit, so he intentionally dropped the jade on the hard floor and chipped a piece off. He could still carve out his design, but no one else wanted the "damaged" jade. He paid the low auction price for the "defective" jade, took it home, carved a beautiful pendant, and sold it for a fortune. But if he hadn't "thought fast" and vandalized it at auction, then he wouldn't have made so much money.

This is how Chinese have thought of business for hundreds of years. Of course, that's why their economy went down the toilet for centuries, and why the last thing they invented was paper 1000 years ago, because no one will create anything new when it's immediately stolen. But right now they have an open ended feeding opportunity on all the inventiveness of the outside world.

The Chinese will never practice business ethics, they truly don't understand what that is.
8 posted on 11/27/2006 3:07:40 AM PST by starbase (Understanding Written Propaganda (click "starbase" to learn 22 manipulating tricks!!))
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To: glorgau

been gettin junk mail ads for replica rolexes-$79!!!


9 posted on 11/27/2006 3:15:23 AM PST by 1234 (WHO is Responsible for ENFORCING IMMIGRATION LAWS?)
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To: Gorzaloon

My company will not knowingly sell even one piece of equipment into mainland China for this reason.

The Chinese are intellectual property thieves. Period.

Pretty soon you will see big companies that have moved many of their manufacturing plants to China losing their IP.

Expect to see a Rotomola cell phone for $15.00 in the near future.


10 posted on 11/27/2006 3:17:04 AM PST by EEDUDE
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To: EEDUDE
Pretty soon you will see big companies that have moved many of their manufacturing plants to China losing their IP.

Expect to see a Rotomola cell phone for $15.00 in the near future.

One of my parts vendors has offshored teir manufacturing to China. The kicker is that it is an Export-contolled item.

I taunted them with, "Next year I am going to buy this $80 device for $10 from the Red Dragon Noodle and DPM Company, and you know it!"

11 posted on 11/27/2006 3:24:38 AM PST by Gorzaloon ("Illegal Immigrant": The Larval form of A Democrat.)
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To: EEDUDE

If you are a golfer, you can go to Bejing and get a "golf tour". During this tour you can view the assembly of world-class golf clubs. For each "authentic" set, there was another with a Chinese brand plastered over it selling for $50. Knock off Irons, Woods, Putter, Speciality clubs, and leather golf bag cost $100 - $125.


12 posted on 11/27/2006 3:24:38 AM PST by USMMA_83 (Tantra is my fetish ;))
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To: USMMA_83

And waht do you think the the Chinese do with all the money they make...??

Buy up american companies and make missles pointing at the rest of the world... ahh, capitalism, isn't it great!


13 posted on 11/27/2006 3:33:02 AM PST by observer5 (It's not a War on Terror - it's a WAR ON STUPIDITY)
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To: starbase
This is how Chinese have thought of business for hundreds of years. Of course, that's why their economy went down the toilet for centuries, and why the last thing they invented was paper 1000 years ago, because no one will create anything new when it's immediately stolen. But right now they have an open ended feeding opportunity on all the inventiveness of the outside world.

Good point.

14 posted on 11/27/2006 3:43:52 AM PST by GOPJ (Muslims wear us down through terrorism.They should be worn down through mockery & criticism-Fjordman)
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To: starbase
I have worked and lived in Asia for 20 years now and can agree with your assessment 110%.

Sadly the majority of Americans fail to understand the Chinese mentality when it comes to business.

I could tell stories all day long of doing business in Asia that would curl many a FReepers hair.

15 posted on 11/27/2006 3:44:22 AM PST by expatguy (http://laotze.blogspot.com/)
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To: GOPJ

I challenge anyone here to name one successful Chinese company along the lines of Toshiba, Sony, Hyundai, IBM, Ford, Colgate-Palmolive, ---- one just one.


16 posted on 11/27/2006 3:47:38 AM PST by expatguy (http://laotze.blogspot.com/)
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To: glorgau
a Chinese manufacturer came out with a phone that looks very much like a PSP, although not as wide, with a stack of pirated Nintendo games thrown in for good measure to beef up its gaming credentials,

Why would they give away free NINTENDO games along with a SONY PSP?

17 posted on 11/27/2006 3:49:55 AM PST by Born Conservative (Chronic Positivity - http://jsher.livejournal.com/)
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To: glorgau
A good way to this would be to delve into fake - oops, I mean replica - watches. There are three basic levels of 'fake' watches.

Level 1 is the type that even a blind fella could tell was fake. The watch simply looks ludicrous in terms of quality of finish, and the mechanical movement (we are talking about automatic and manual-winding watches here, not that trash one puts a battery into) normally gives up ghost within weeks (you'll be lucky if it lasts through several months of regular wearing).

The next level is a marked improvement from the first. For one, the finishing is quite good. For instance a fake Rolex will have the heft and look of the authentic thing, and even have the hologram ...however comparing the real thing with the fake will easily trounce the fake. Also people who know watches can still be able to tell these watches as fake, at times with abundant ease. As for the movement ...well, if one REALLY takes care of the watch then it can last over a year. If REALLY REALLY good care is taken, and the person only wears it once a week or something like that, then the Chinese-made movement can last longer than that. However there is no need to service the watch, but it can fool most people who don't own an authentic version of that watch (next time you see someone wearing a Breguet yet his salary doesn't make him able to afford a US$ 50,000 watch then questions have to be asked).

This brings me to the third and final level. These watches are a nuisance to watch collectors since they are made to exacting standards. While there are several levels in each level (e.g level 3 has 3 levels in itself), the utmost level is almost (note:almost) indifferentiable from the real thing. What is worse is many times they will use authentic watch movements (be especially wary if your watch has an ETA movement, since level 3 watches sometimes use real ETA movements). The crystal is sapphire ....just like the real thing. It gets very hard for MOST people, even people with an authentic watch next to them, to distinguish the very best of level 3.

This is one reason buying watches from EBay can be tricky. While there are rules discouraging selling 'couterfeit' items, and in most cases real watch savants can be able to sniff a fake from a mile off, there are SOME 'fake' watches that are truly hard to spot. The redeeming thing about these watches is that they tend to be more expensive than your typical 10-dollar rolex (I've seen some going for 4K, which though expensive seems a deal when the real thing is 15K going up).

There was a story sometime last year about a Chinese factory that would make a Japanese motorcycle (under license) during the day, and at night have another shift making the same exact motorcycle, but branding it under a Chinese name. In this case the only difference between the two motorcycles was that one had the Japanese brand (and was legally made), while the second had a Chinese moniker and was illegal. Maybe the same thing happens with the level 3 watches ....whcih is possible since the sapphire crystals used by many of the Swiss companies are made in China, some of the components made for the ETA movements are made in China too. Thus it wouldn't take too much effort to make a 'fake' watch using 'real' parts.

Anyways, I wonder what it will take for piracy and counterfeiting to stop, but one thing is for sure ....there is a truckload of cash to be made faking things. And as the Chinese get better at making better quality items for cheap then the level of quality found in fakes will continue to increase.

18 posted on 11/27/2006 3:55:23 AM PST by spetznaz (Nuclear-tipped Ballistic Missiles: The Ultimate Phallic Symbol)
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To: spetznaz
Anyways, I wonder what it will take for piracy and counterfeiting to stop...

It'll stop when the price of doing business is too high. And yeah, the Chinese government knows how to make the "price" of doing something too high - it's the stock in trade of all that is totalitarian.

19 posted on 11/27/2006 4:15:24 AM PST by GOPJ (Muslims wear us down through terrorism.They should be worn down through mockery & criticism-Fjordman)
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To: 1234
been gettin junk mail ads for replica rolexes-$79!

I picked up four (4) replica Rolexes from a street vendor in Shanghai for $10 total ($2.50 each). Yes, they work just fine.


20 posted on 11/27/2006 4:22:19 AM PST by Jeff Gordon (History convinces me that bad government results from too much government. - Thomas Jefferson)
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