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Cellphone import worry

Posted on: Monday, 9 June 2003, 06:00 CDT

CONSUMERS are being warned to make sure their mobile phones are from authorised resellers after an incident where a battery in a parallel imported phone leaked.

The phone's battery had been exchanged for a cheaper offering, something Craig Hastings, Alcatel country manager for mobile phones, says is not uncommon with parallel imported handsets.

Internationally, there have been cases of batteries exploding because they are not a genuine product, says John van Rensburg, managing director of Auckland distributor Brightpoint.

Brightpoint's product range includes Alcatel, Nokia, Sony Ericsson and Motorola.

Mr van Rensburg says there have been cases of both batteries and chargers being replaced with cheaper models before being sold in New Zealand.

"They remove a safety pin out of the battery which causes the battery to overheat. That's how they bring the cost of manufacturing down."

The incident highlights an issue raising concern with telecommunications equipment manufacturer Alcatel. Mr Hastings says at least one shipment of about 200 Alcatel units has been parallel imported to New Zealand.

Mr Hastings says while Alcatel hasn't been seriously affected as yet, that is likely to change when the company releases a range of higher-end offerings later this year.

Expensive high-end handsets are the key target for parallel imports.

It is not against the law to import and resell mobile phones without manufacturers' permission. Brightpoint is seeking legal advice to establish what sort of marketing campaign could be undertaken to advise the public on the issues of parallel imported electronics, without raising the ire of the Commerce Commission or breaching the Fair Trading Act.

Mr van Rensberg is keen for the Government to review legislation regarding parallel importing for the electronics industry.

"It's all very well to bring in a pair of jeans but as soon as you've got electronic componentry, there are impacts on the customer and how that product is serviced and managed."

Manufacturers' warranties don't apply to parallel imports.

"If the product fails, the customer will be liable for paying for the repair of the product by an authorised repair agent," Mr Hastings says.

Mr van Rensburg says importers are taking advantage of currency fluctuations in the euro and the weak US dollar.

"Once they stabilise you won't see any disparity in pricing on a global basis. And the only other way to get the price down to an aggressive price point is to remove the original componentry and replace it with other product."

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