Authorities Break Up Elaborate Fake iPhone Ring in China

[Michael Essany]

If you thought the rampant problem of phony Apple products and other unauthorized retailers had subsided in China, think again. The world's most populous mobile community continues to be plagued by elaborate networks and rings of fake Apple product vendors and distributors.

According to a report from Reuters this morning, Chinese authorities in Shanghai have taken into custody at least five people accused of manufacturing and subsequently selling counterfeit versions of Apple's iPhone. Incredibly, however, this ring was anything but amateur. In fact, local police said the group responsible for the fake iPhone network acquired components for the devices from Guangdong in southern China and then comprehensively produced and assembled the fake devices in rented apartments across Shanghai.

During the bust, authorities rounded up some 200 fake iPhones. At present, there's no telling how many were sold. But we do know that they are pretty pricy to make - even for a fake device. "The cost to make one fake iPhone, which used some genuine parts, was around 2,000 yuan ($313). It was sold on unauthorized markets and on the Internet for around 4,000 yuan, only a few hundred yuan cheaper than the real iPhone," the report reads.

Apple is believed to be working closely with Chinese authorities to crack down as swiftly as possible on these intricate networks of fake iDevice peddlers ahead of the iPhone 5 launch next month.

Source: Reuters

[mustard05]

There is a great documentary on subjects like this. They actually go under cover in the documentary in China and go into these apartments. It's is an amazing process these counterfeiters go through. The movie is called "illicit trade" or something similar to that. The documentary is a couple years old.

[Jastra]

Wouldn't it be easier and more profitable to just sell drugs?... Lol

[mustard05]

Wouldn't it be easier and more profitable to just sell drugs?... Lol

No, it's not. I only know this because I have studied this subject in an economics class.

[vantheman169]

There is a great documentary on subjects like this. They actually go under cover in the documentary in China and go into these apartments. It's is an amazing process these counterfeiters go through. The movie is called "illicit trade" or something similar to that. The documentary is a couple years old.

Found the video, here it is for all to enjoy and stream. Thanks so far very interesting!

MEGAVIDEO - I'm watching it

[rokes]

interesting but not surprising

[fine12]

1 Apple IN china ! we are acpect this is " MADE IN APPLE " Apple is NO.1

[contestest]

Wouldn't it be easier and more profitable to just sell drugs?... Lol

That earns you the death penalty in china lol

[maddawg05]

1 Apple IN china ! we are acpect this is " MADE IN APPLE " Apple is NO.1

Huh??

[Notangel74]

What's Phony and ring