Friday, November 16, 2007

CHiNA- clone capital?

China started its cloning trade in the 1980s, and by the early 90s the creations had evolved from cheap textile knockoffs to more brand-specific goods. Cellphones, microchips, toys, cars, even iPhones—there's virtually no high-tech Western product that China's cloners can't copy. Pretty soon, maybe within another decade, cloners would be offering functional duplicates of Intel processors, Viagra tablets and Bosch power tools. Right now the most recent victim is Apple's i-phone.

Copies of the iPhone are now dividing into two categories: the inspired-bys and the wholesale duplicates. The first category includes work-alikes manufactured by well-known cellphone makers, like HTC—one of the largest manufacturers of smartphones—and Sun Microsystems. HTC announced that it will be bringing its "Touch" model to the U.S. this fall. In May, Sun CEO Jonathan Schwartz followed in the footsteps of Steve Jobs (and Meizu's Jack Wong) by displaying his own one-off version of a touchscreen prototype at a software-developers convention. Sun's chairman, Scott McNealy, had no qualms about making the iPhone comparison: "We have our own shirtsleeve version of Steve Jobs announcing a phone," he told the audience.
The number of duplicates is also growing. Although Meizu may have gone silent because of fears of an Apple lawsuit—after my visit in Hong Kong, they stopped responding to my e-mails and phone calls—other companies are moving ahead. A few days before Apple's launch, an online video surfaced depicting a sleek new product called the P168 [watch the video below]. The phone came in a black box, marked with both the iPhone and the Apple logos. The video showed the phone being unpacked and operated (the start-up screen also featured the Apple branding). There were features that the iPhone didn't have, such as the ability to operate on two different networks at once; six speakers; and, addressing a major prerelease complaint about the iPhone, a removable battery. I asked my translator if she could find one on the street. They weren't available in Beijing—yet—but a few weeks later, a friend discovered one in Guangzhou. The manufacturer of the P168 wouldn't comment for this story, but the hardware was real, and it worked.
Neither the miniOne, the P168 nor even HTC's model are likely to carry the mystique or quality of the iPhone. But that's not really the point. Those phones will be available to millions more consumers than Apple's product, at a lower price. The rest of the world will accept the clones as if they were the original. That will make them no different than a flood of Chinese products—cars, pharmaceuticals, food, appliances—that are emerging from the shadows and climbing the learning curve to the point that they will no longer be clones at all. They'll be the real thing.

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