While a grey device may be cheaper than an original one, it leads to disappointment for consumers.
This is the sentiment of Samsung Electronics SA's director of mobile communications, Craige Fleischer.
"You most commonly find that people go for grey devices because they are trying to save a buck," said Fleischer, adding that price is one of the key drivers of the grey device market. "We feel that what they are losing out on by not having the additional offerings that come along with a device is far more than the money they have saved in buying a handset that is not properly configured for the local market."
He added that buying a handset is no longer just about the hardware; it's about the value proposition and the support and ecosystem around the hardware.
Fleischer noted that there are two kinds of grey devices - those that are genuine products but are bought outside of the country, and fake devices that look like a legitimate handset but are not. "It is not illegal to sell products bought outside of SA in this country. But, often, the seller doesn't notify the consumer that the product is grey and explain what that means," he noted, adding that most grey devices in SA are low-level handsets and feature phones.
According to Fleischer, people using grey devices miss out on the after-sale support and the country specific ecosystem that has been tailored to meet the needs of local consumers. Samsung's Accidental Damage from Handling (ADH) offering, as well as the brand's partnership with AlwaysOn to provide 1GB free WiFi data each month to users with WiFi-enabled Samsung devices, are not accessible to consumers using grey products, he said. "Consumers get disappointed when they can't access these offerings."
Warranties are limited to the region where the device was purchased, adds Fleischer, noting that part of the revenue generated from the sale of a device goes towards after-sale support and servicing of the hardware. If the software on the device is not approved by the networks and configured for the region it is being used in, consumers won't get the desired experience, Fleischer pointed out. Even a phone or tablet bought on an overseas trip being used in SA constitutes a grey import and will lack the support designed for the local consumer.
"By purchasing a local device, consumers are buying into the value proposition and experience the manufacturers are offering. If something goes wrong, we want to be there to back them up and make sure their experience is seamless," concludes Fleischer.
"Consumers must make informed decisions. Ask questions before you buy a device. If the price looks too good to be true, chances are it is too good to be true."
Share
