Nokia: One out of Five Cell Phones are Fake

Posted 01/21/2011 at 9:36am | by Paul Lilly

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As Nokia struggles to remain relevant in a competitive mobile handset market, one thing that isn't helping is the prominence of counterfeit cell phones. According to Nokia, as many as one out of every five, or 20 percent, of all cell phones around the world are unlicensed knockoffs, Reuters reports.

"It is mostly China-originated, but it is global. It is not only in Asia, but also in Latin America and even in some parts of Europe," said Esko Aho, a member of Nokia's executive board."

Nokia isn't the only company to complain about forgery in foreign markets. As The Inq points out, Microsoft's Steve Ballmer last year complained about the impact of counterfeit software originating from China. As it pertains to cell phones, the Chinese government has been stepping up its efforts to curtail the problem.

"Recent developments indicate [Beijing] is beginning to take seriously the long-festering problem of smuggled handsets and counterfeit handsets, a thorny issue that not only undercuts the tax revenue but also tarnishes China's image abroad," market research firm iSuppli told TGDaily back in July 2010.