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Why international gadgets don’t have local warranty

I often get these types of questions from readers — why are gadgets bought in other countries (HK, SG, US) not supported for warranty repairs and replacement in the Philippines? Well, it turns out this is all about the economics of the distribution system.

There’s a supply chain that is normally followed when a product is introduced in the country. Normally, brands would not bring their products in the a region if they do not have a local distributor.

Distributors play a huge role as they are basically the ones that somewhat bank-roll the introduction of the products to the country. Oftentimes, there’s only one distributor for an entire brand. Sometimes, if it’s a huge brand or large volume, there could be two or more distributors (Nokia has two huge distributors in the country).

Remember the time when only Dell laptops are available in the Philippines but not the Dell smartphones? It’s because the distributor was only carrying the laptops. Dell had to look for another distributor for the phones before they can introduce them (ended up with MSI-ECS) locally.

Once the distributor orders in bulk and imports them from the manufacturing countries (normally it’s in Taiwan, China, South Korea or Japan), it will distribute the products to its network of dealers or resellers. Popular dealers like VillMan, PC Express, Octagon, Asianic, Complink are the ones that you see often in the malls but there are actually more in the provinces that we haven’t heard of.

Sometimes, one of the dealers will also be asked by the brands to put up a concept store. So the next time you see a concept store by Asus, Samsung, Western Digital or Sony, try to figure out who’s the dealer behind the store.

Normally, dealers that run the concept stores also get some support for their marketing budget. Some would also get 50-50 share in the construction cost of the store itself.

For warranty, the dealers also serve as the de facto service center. This is the reason why if your device has a defect, you just need to bring it to the store you bought it (along with the receipt) for warranty repairs or replacement.

The least a store can do is receive your item and then refer it to the distributor. This is the reason why sometimes it takes weeks before your product is inspected, repaired, serviced, replaced and returned. Depending on the capacity of the distributor, pick-ups and delivery to that store may only happen once or twice a week.

If the product line is already strong and the volume of units sold can justify it, the distributor will also put up its own stand-alone service center and this is where all dealers will refer customers for warranty claims.

As such, to protect the business of the distributor and dealers, they will only receive items you actually bought from them. These are the units which are eligible for local warranty. Otherwise, they might also accept grey units but you’ll have to pay for the service since it’s not covered by warranty.

The reason is now pretty clear:

* The distributor is only responsible for specific products that it actually imported and sold to dealers. This is why serial numbers, warranty cards or ORs are used to track them.

* Distributors will incur cost for warranty claims. It could be from cost of manpower for repairs, cost of shipments for returns and replacements or cost of defective parts.

* Products bought elsewhere are considered loss of sales opportunity for the distributor so not only do they not want to provide warranty for it, they also consider it competition. The brands themselves cannot also track the sales volume outside of the distributorship so it may seem that sales are slow but in fact it is very strong in the gray market. Those numbers are not considered by the regional/global office as originating from the country.

* This is the reason why gray market units or parallel imports are way cheaper than the mall prices of the devices — the prices do not account for replacement warranty and they did not invest in infrastructure for repairs and services. The only time gray market units are more expensive that the SRP is because of high demand and low supply of the units.

* So, even if your unit is still covered by international warranty, the local service center will eventually charge for repairs. This is the only way the local distributor can recoup and maintain operation of their business.

How about international warranty?

Most brands or manufacturers will offer international warranty if local warranty is not available. This means that wherever you bought your gadgets, it will be serviced, repaired or fixed by the international service center.

The international service center is usually stationed in regional hubs like Singapore, the United States or Japan.

So yes, you can have your BlackBerry Bold 9900 handset which you bought in the US or that Canon S100 camera you bought in HongKong repaired from the factory defects. Thing is, you have to send it back to the originating country to do so (the distributor there will honor it). That’s how the ball rolls.

There’s economics at play in this distribution ecosystem. Some may have a different system but based on numerous conversations we’ve had with dealers, distributors and manufacturers, this is normally how it goes (the only exception I know of is Apple). Hope this simple explanation helps.

Abe Olandres
Abe Olandres
Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.
  1. Apple Has international Warranty :D just sayin’

    • what good is apple’s warranty if you are asked to pay 50~60% of the price just to replace a defective ipod nano

  2. That why gadgets & other items not brought in the country should be given extra care. Study and inspect these gadgets very carefully before buying them or else it’s a waste..

  3. +1 great timely article.

  4. Ask ko lang po ah(please answer)
    paano po kung bumili ako ng apple product from grey market(e.g. Widget City :D) na may international warranty, ang ibig sabihin po ba nun pagka nagka sira yung laptop tatanggapin siya sa authorized service center dito sa philippines pero ipapadala siya sa bansa kung saan siya binili para ayusin? or dito na mismo sa philippines aayusin?
    sorry for the stupid question, salamat na rin po sa sasagot :D

    • AFAIK mga grey units doesnt have local warranty only, may international warranty meron siya pero if you check on WC kaya mura gadgets kasi walang local warranty. (please correct me if i am wrong)

    • @Abubot

      Tatanggapin yung laptop basta pasok sa warranty. Apple’s warranty is always universal. For their products, there’s no such thing as a local only warranty.

    • @Ben – except for iphone. You need to buy from Smart or globe. otherwise, no warranty.

    • where does openline iphone go for repair in our country?

  5. That’s why Yugatech should stop mentioning shops that sell grey units such as Widget City. Cheaper yes but only because they don’t have official warranty.

    • Your logic is not valid. Mentioning the shop does not create the economy. It’s the buyers that create them. So buyer beware.

    • If we follow your reasoning, then I should not be buying from Widget City, KimStore, DB Gadgets, Multiply, VirraMall, Shoppevilles, Makati Cinema Square, Park Square 1.

      But the truth is, I do. Because sometimes these are the only shops that sell them — like the Google Nexus 7, Kindle Fire or the Moto Activ and many more gadgets.

      Grey market vendors are a fact of life. We here at YugaTech do not discriminate, we only inform.

    • If you’re smart enough to test your item before buying, specially for better name brands, you won’t have to go through warranty at all. So the extra price for official warranty is not that attractive. And then, if you have enough experience with warranty service locally, you know there’s very little assurance to look forward to (with perhaps a few exceptions, and on specific branches only).

      It’s up to these official distributors to prove their services worthy of the premium that they charge.

    • IMO, yugatech is a blog site for review, they just review the devices and puts a link who provide it.

      buying is a matter of choice, pay-less expect a lesser warranty / Pay more if you think it is worth it. it’s your choice. it doesn’t create a market.

      in fact, you should be happy , reading articles of special devices for free at yugatech including the devices that are yet to come. without this stores/parallel imports you curse, PH will be 6months outdated with the gadget trend.

    • here’s the thing…if you’re coward to get a grey unit then DON’T BUY IT. you can’t just simply tell yuga to stop informing us about these grey units. just my two cents.

    • Easier to tell others what they should do rather than think for yourself, huh?

  6. buti na lang may shop warranty pa :D hehehe’

  7. ang aarte natin sa warranty pero reklamo ng reklamo mahal ang PRESYO kumpara sa ibang bansa, we pay extra for official warranty and having Grey vendors gives us the option of buying cheaper for shop warranty or buying full price with full warranty

  8. My IPAD had a hardware defect, i sent it to the service center and they told me apple will replace the unit. Its been with me for four months. Thing is, I have to wait for 3-4 weeks for the replacement since they have to order it abroad.. But if your IPAD has bumps or scratches or faded areas.. Say goodbye to the free replacement im talking about..

    Blackberry phones are the same.. A local distributor will acknowledge your phones and send them to sg.. And thats for 30-45 days which leaves u no phone for that waiting days.

    What I dint like about service centers here is the fact that opened units or repaired units most of the time, barubal po ang pagkakagawa, like what happened to a friend of mine with his new psvita, the shop says 1 year warranty for the unit, but fuck when problem arose with his unit he sent it to service center and boom binaboy vita nya, instead idikit ng maayos ung parts like hinang, iniscotch tape lang ung loob, parang greenhills style po ang ginawa. Natuklasan po nya un ng pinaopen na lang nya yung unit sa greenhills talaga na nagbebenta ng parts ng vita.. Imagine if that happens to your unit.. May shop warranty ka nga, ung shop ba na yun ayos gumawa? :)

  9. @Exe, then complain to, first, the dealer for doing such a sloppy job, then write a letter to the manufacturer if nothing happens. Visit their Facebook fan page and rant away there.

  10. Indeed this is a very interesting article. However, taking into consideration everything that’s been said, can someone please explain to me HOW COME SOME AUTHORIZED DISTRIBUTORS ONLY GIVE 1 WEEK/1 MONTH/6 MONTHS WARRANTY? Honestly, even 1 year warranty doesn’t cut it for me. After all, when you purchase from an authorized distributor, you are paying a premium for it’s supposed warranty. So why is the warranty only that short? Don’t tell me that when you buy an iPod, the life of that gadget is only for a year. Ridiculous!

    You want economics? OK. Here’s the economic thinking of a typical consumer. Most often than not, the devices you purchase from an authorized distro is equally the same quality as that of grey market devices. Syermpre, pareho nga silang BRAND NEW and SEALED, eh. So when an item is used from a brand new state, and used with utmost care, 90+% of the time your device should work flawlessly. So I’d rather buy a BRAND NEW/SEALED device from the grey market (and test it thoroughly before paying for it) then take extra care of my device to make sure it works well for more than a year, than purchase it from an authorized distro, pay a premium for it, just so that I could reast easy for a few months, and if some shit happens to my device after a year, kahit na nag-bayad ako ng mahal, sasabihin lang sa akin “sorry, sir, out of warranty na po”.

    • can someone please explain to me HOW COME SOME AUTHORIZED DISTRIBUTORS ONLY GIVE 1 WEEK/1 MONTH/6 MONTHS WARRANTY?

      Because that’s how much they can afford to give, depending on their finances, risk threshold, etc. That’s why you ask yourself if X product with Y warranty is worth purchasing from Z store, or what value (if any) do you get from that.

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