Recent data reveals a concerning trend in Brazil, where smartphone smuggling has become a significant issue impacting the market. According to statistics from analyst firm IDC, approximately one in every four smartphones sold in Brazil enters the country through illegal channels. The primary route for these smuggled devices is through Paraguay, with a focus on lower-cost Chinese brands like Xiaomi, Oppo, and Realme.
The so-called 'grey market' for smartphones has seen a substantial increase in activity, with the percentage of illegally sold devices rising from 9% in the first quarter of 2023 to 25% by the end of the year. This surge amounts to 6.2 million smartphones being sold through irregular means, accounting for 10% of the total national smartphone market.
Concerns raised by the Brazilian Electrical and Electronics Industry Association (Abinee) highlight the negative implications of smartphone smuggling. These include the lack of certification from the National Telecommunications Agency (Anatel), absence of manufacturer guarantees, and the absence of safety and operational testing for these devices.
Consumers are particularly at risk when purchasing smuggled smartphones, as they may not receive the necessary support or quality assurance typically provided by legitimate products. Marketplaces serve as the primary distribution channels for these illegal devices, further complicating the issue.
Efforts to combat smartphone smuggling have been called for, with Abinee urging the government to take more decisive actions. While some digital platforms have initiated anti-piracy measures to block the sale of illegal devices, formal agreements with major marketplaces like Mercado Livre and Amazon are still pending.
The economic impact of smartphone smuggling is significant, with Brazil projected to lose billions in tax revenue and research investments due to this illicit practice. Additionally, an estimated 10,000 direct and indirect jobs could be affected by the consequences of smartphone smuggling.
Abinee emphasizes that addressing smartphone smuggling is crucial not only for economic reasons but also to combat organized crime, corruption, and violence that may arise from such illegal activities. Effective supervision of marketplaces and stronger enforcement measures are seen as essential steps to curb the proliferation of smuggled smartphones in Brazil.
