Cloned In China

Nokia in China sells their phones with different price in different district, rich district with higher price, poor district with lower price. for example, for a same model, The price in Guangdong province is 2200 RMB, then possibly the price in Guangxi will be 2000 RMB. The result caused by this policy is that the Nokia distributors all try to source  from other district where Nokia handsets sells at a lower price, but  not from the local district dealer. this is forbiden and punished by Nokia. 

Every Nokia handset in China  has a series number which indentify the handset to a specified disctrict. The disctrict dealer punished the distributors according to the  district series number  . The fine for a phone not belong to the local disctrict  is about 2000 RMB (about $290 ).

 it’s said that Nokia enven hired third part company  to ensure the execution of  the sales policy . Usually what the  third part agents do is send staffs to the  retail shop to  buy phones  which is sourced from other district specially, and then use these phones as the proof to punish the distributor. The fine given by the third part agent for such a phone  is much  heavier. if a phone sells 2000 RMB, then the fine may be up to 10,000 RMB. 

But the hardest part for the distributors is not the heavy fine. The fatal hit is that Nokia refused to provide affter-sale service to  those customers that buy phones whoes district number belongd to other districts.

The distributors are not going to keep silent about this policy from now on. Today 200 distributors gathered in  Changsha. They had a meeting there, trying to find a solution. they said they may prosecute Nokia abusing monopoly  power on sales. 

[from Hunan online]