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Intel distributors flummoxed by parallel imports and counterfeits
Over the past three months, Intel processors are being traded at prices lower than the distributor price—thanks to the glut in parallel imports.
Interestingly, distributors are pointing the finger at the vendor’s own authorized sub-distributors for parallel imports. They are worried as the market operating prices of these parallel goods are between 5 and 10 percent lower than their landing cost.
According to one Intel distributor, these parallel imports are coming via Singapore and Hong Kong and the serial numbers of the CPUs suggest that they are part of the OEM shipments meant for Europe and China.
Also, adding to the woes of Intel partners is the increasing number of such OEM products brought into the country, using counterfeit packaging.
“While on one side there is the problem of parallel imports which is driven by Intel’s own authorized sub-distributors, on the other side, there is an increase in counterfeits. This is creating huge problems for all distributors,” said a senior official at one of the Intel distributors, who didn’t want to be named.
Recently, in December, Intel had sent an email advising resellers to beware of parallel imports. In the email, the vendor has officially stated that while it will provide warranty support for all processors irrespective of the source, parallel imports will not get advance replacement. The mail, however, doesn’t talk about counterfeits.
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