Mobile company loses 10% of annual turnover due to grey imports

A local representative of an Indian smartphone company has called on government authorities to clamp down on unofficial imports which are reportedly hurting the manufacturer’s sales in South Africa.

Unofficial or grey are typically cheaper than officially licensed products as they do not offer after-sales service, including aspects such as warranties or free screen repair programmes.

According to a report on daily information technology site, My Broadband, India-based phone maker Karbonn, started targeting consumers in sub-Saharan Africa with mid-range smartphones in July this year.

Daryl Peel, director of Karbonn Sub-Saharan Africa, reportedly said: “These parallel importers cost us in excess of 10% of our annual turnover, which, when you consider the size of the cellular market in SA and sub-Saharan Africa, equates to a substantial figure.”