Its already a big issue. For example in China, you can a buy a counterfeit Iphone for 150-200 dollars theres a big difference from the price of the original item. This will have a big impact in the profit of the manufactures they are competing against their clone.
In my opinion I think counterfeits will always exist in the marketplace. A question for the others here, is do you think this problem will become a larger or smaller issue in the future of electronics?
Now a day’s almost all electronic industries are facing different types of challenges for their existences and counterfeit is one of the major threat for the industry. Before going to deep, we have to consider and analyze different factors like, why peoples and local authorities are encouraging the counterfeit products? Why there is major cost difference between these products. The best part is China and neighboring countries are the leading players in this market. If we are analyzing how china becomes the leader, the availability of cheap raw materials and less labour cost may be the answer.
But again how Chinese companies are capable to make this counterfeit products, from where did they get all these product designs and ideas. Again it’s a fault from the original vendors and design companies, so by different ways we are providing the chances to Chinese companies for making counterfeit products. If we want to avoid counterfeit products, strictly follow the copyright acts, keep away Chinese companies from original manufacturing process and more over make the cost justifiable with the value and features of the products.
@ Ms Daisy: I agree that as long as there is demand for a product, suppliers will continue to make it to make profits. This is the basic free market principle. However, this is one of the downside of the free-market. If left unchecked and uncontrolled, the free-market will lead to unethical and illegal practices. That's one major reason why you need government intervention in the markets to ensure that companies do not engage in unethical practices.
What happened to the principle of supply and demand? For as long as we have high demand for these counterfeit products in the West and other developing nations, you bet you will get increase in its supply from China and the Chinese governement cannot do anything about it.
Are we to take it that counterfeiting does not occur in the United States and Western nations? Does it take place only in China or why exactly was the ITC report so narrowly focused on China? What I would like to know is how counterfeit products infiltrate the supply chain in developed economies. Any thoughts?
I would agree that China is increasingly becoming one of the largest producer of counterfeit products. The counterfeit products are being supplied all over the world. I think the root cause behind this is that the Chinese government has failed to enforce regulations which protect copyrights and prevent counterfeit products from being produced or distributed. Unless there are restrictions from the Chinese government, there is very little that external organizations can do.
thx barbara, most important point is people prefer china as a place for implementing their ideas into a product because the operating cost is comparitively cheaper and is faster. as far as i know china manufacturers are capable of duplicating or replicating products of other companies within seconds for example if a new mp4 player is being manufactured in china, the same features, aesthetics like colour, size may be the chips inside can be the same or different ones but their functions remain similar and these goods are even sold in front of the same showrooms ( original owner/ company of the products) i have witnessed lot of such incidents especially in the watch market which have very tiny IC s. something has to be done to strengthen the meaning of IP, it should be drilled into the heads of all the people involved in the manufacturing chain this will help to stop products entering into the gray markets.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.