Big Smartphone Discounts Could Mean Counterfeit

SAN RAFAEL, Calif., Jan. 24, 2012 /PRNewswire/ – NewMomentum, Inc., the premier solution provider for online Brand Protection, announced today the results of its Q4 global review of the smartphone online marketplace.

Twenty-three phones from five key brands – Apple, HTC, Motorola, RIM, and Samsung – were monitored across 17 well-known B2B and B2C online marketplaces.  Data was collected, validated, classified, and ranked.  Ongoing monitoring for four weeks and intelligent consolidation of the results to unique sellers ensured a comprehensive market snapshot.

The resultant report provides key observations on the potential market for illicit sales of smartphone devices:

  • Significant discounts were offered during the monitored period with 23% of the sellers advertising products at 31% to 45% below list price and 33% advertising products at a discount greater than 45%.
  • The Asia Pacific region (APAC) showed the highest level of discounting with 24% of the sellers in that region offering a 31% to 45% discount and 41% selling at more than 45% below list.

“It is estimated that 10% of electronic goods are counterfeit or contain counterfeit parts.  And this rate is obviously far higher on the online marketplaces since they are the venue of choice for many of the sellers of these fake goods,” said Pam Passaretti, CEO of NewMomentum.  “Online marketplaces offer a low overhead means for instant access to consumers and other buyers all over the world.  This is truly a case of ‘Buyer Beware.’  But it is also a case of ‘Brand Beware’ as these sellers of illicit goods pose a real threat to the brands and revenues of the legitimate product manufacturers, and in some cases even the safety of their customers.”

NewMomentum can be found online at www.newmo.com

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