Association says 25 percent of smartphones in Brazil are sold ‘illegally’

About 25% of the national mobile phone market consists of irregularly purchased devices. The information was announced by the Brazilian Electrical and Electronics Industry Association (Abinee), which includes representatives of the main smartphone manufacturers operating in the country.

According to the research, the rate of illegally purchased devices in Brazil was 10% in 2022, while this rate was 8% in the previous year. There was a significant jump in 2023, with 6.2 million devices classified as irregular by the organization sold in the country.

Again according to Abinee, Buying a mobile phone from the so-called gray market can be risky for the consumer.. In these cases, in addition to the lower delivery guarantee of the product, Less specialized technical assistance support and even lower tax revenue for the governmentSince the devices do not go through the Compatible Shipping program.

What is an illegal mobile phone?

Abinee classifies a mobile phone sold by merchants on marketplaces on major e-commerce platforms as “irregular sale” or “illegal.” They normally come from the country where they produce, such as China, or enter Brazil from Paraguay.

The study shows that the most popular in this unregulated segment is Xiaomi Redmi Note 12. launched last year The model is currently available in online stores for less than R$ 1,000, while its price on the manufacturer’s website is R$ 1,999.. The organization announced that it has taken measures to prevent the percentage from increasing further in 2024.

Mobile phones considered illegal may not have all regulatory documentation for operation on national territory. Besides, some of them have not yet been officially released on Brazilian soil. They still operate normally in the country if they are approved by the National Telecommunications Authority (Anatel).

Learn more: Is my mobile phone pirated? How do you know if your device will be blocked in Brazil?

But their popularity has only increased in recent years. Abinee attributes this to the rise of online shopping since the Covid-19 outbreak, but the lower prices of these marketplaces compared to official stores are also an important factor.