Repacked P4s flood market

A large number of tier-two resellers have been found selling ‘repacked’
Intel P4 processors. However, those found selling repacked processors in Mumbai
are very clearly offering customers an option to choose between ‘repacked’
and ‘originally packed’ processors. The repacked units are priced Rs 200 to
300 lower than the ones with original packing. The importing channel still makes
a margin of Rs 1,000.

Market sources have clarified that these are not ‘fake’, ‘remarked’
or ‘counterfeits’ processors, as reported by some sections in the media.

These are original processors packed in a counterfeit packaging. By doing
this, the exporter gets to make decent margins of around 10 percent.

“Since we are selling these processors after informing customers about the
‘repacking’, Intel has nothing to worry,” said one reseller who requested
anonymity.

For the past many years Intel has been successfully fighting processor
‘remarkers’ with its Frequency ID utility, a tool that determines the
original rated frequencies of an Intel processor.

“But this time Intel will find it difficult to stop this menace, because it
involves illegal imports,” the same reseller added.

The modus operandi is simple. PC manufacturers purchase bulk tray or OEM
processors that come without the original box, and hence get processors at a
much lower price. These are then packed in counterfeit boxes and shrink-wrapped
to make it look like the original box. Such processors are then exported to
countries like India, Pakistan, Bangladesh, Malaysia and Africa. Since, these
are send through illegal channels to different countries, they also save on the
custom and excise duty.

According to sources, most of the repacked processors are originating from
China and are coming to India via Nepal.

Market sources said that the hefty margins involved have enthused some local
SIs and assemblers to indulge in local re-packing using original boxes that were
retained while selling assembled PCs to customers.

Nelson Johny

(CNS)