Traders feel pinch of phone switch-off
What you need to know:
- Since the government warned of getting rid of fake mobile phones, few customers step into his shop.
- While he says he only sells genuine phones, convincing sceptical customers has become a difficult task.
- According to most mobile phone dealers the Nation spoke to, a growing perception among buyers that the small shops do not have original handsets is hurting their businesses.
- They say most customers now prefer to buy handsets from mobile phone service providers because they believe that is where they will get genuine gadgets.
Paul ‘Tyson’ Madava, 42, is not sure whether his business will remain afloat next month. After eight years of selling mobile phones, uncertainty has crept in.
The Communications Commission of Kenya’s move to shut down counterfeit mobile phones has hit his once booming business hard.
“Honestly I do not know if I will be here. Unless business improves I may close shop,” he said on Wednesday at his Shri Hari Electronic and Mobile Phones shop along Nairobi’s Moi Avenue.
Since the government warned of getting rid of fake mobile phones, few customers step into his shop. While he says he only sells genuine phones, convincing sceptical customers has become a difficult task.
Genuine stock
“It pains because our stock is genuine. We get them from known suppliers like Mobicom and Samsung outlets but sometimes it is difficult to convince buyers,” Mr Madava explains.
He used to sell at least 10 handsets a day but he is now lucky if he can sell one.
“We have to go out of our way to convince customers. Even those we have sold phones to before have to be convinced that we do not sell counterfeits,” he says.
He continues: “I have an assistant whom I should pay wages. The landlord wants his dues plus other bills. I just don’t know how I will deal with it.”
He says some phones could have lost their original (IMEI) numbers after being repaired leading some buyers to believe that they bought counterfeit gadgets.
He explains this is tricky for his business. “Once some genuine models are repaired at the service centres, they lose the original numbers.
"For instance, if the motherboards are replaced, they also lose their serial numbers. So how can customers tell the difference?” he asks.
According to most mobile phone dealers the Nation spoke to, a growing perception among buyers that the small shops do not have original handsets is hurting their businesses. (READ: Traders count losses as buyers avoid shops)
They say most customers now prefer to buy handsets from mobile phone service providers because they believe that is where they will get genuine gadgets.
Small dealers
Ms Fransisca Wangechi mostly sells G-Tide handsets at her Classic Enterprises on Munyu Road, downtown Nairobi. She too has been affected by the switch off of counterfeit phones.
She says most of her customers have been bombarding her with questions about the source of her phones.
“People tell us Safaricom, Fone Xpress and Tuscom outlets sell genuine handsets but even we sell them only that we are small dealers. It is difficult convincing them but we try as much as we can” she says.
On Monday, the Communications Commission of Kenya said it had shut out of the networks more than 1.8 million phones since it began the weeding out.
The commission warned of the switch-off earlier in the year. Mobile operators have also lost revenue owing to the muting with Safaricom switching off more than 750000 phones, Airtel 600000, Orange 72,000 and yuMobile 470,000.
