Apple paying too much for overpriced tat.
(Sorry, that was low hanging fruit..oops, I did it again!)
US federal authorities on Wednesday announced the arrests of 11 people from a group of 14 indicted for tricking Apple into accepting about almost 10,000 fake iPhones and iPads and replacing them with genuine iDevices. The US Attorney’s Office for the Southern District of California said it had served 11 search warrants …
The following is an observation, not an attempt to condone the use of fake goods.
I have a friend who recently came back back from holiday in Africa who says local markets are full of fake iPhones. Most of the local population use them since they are far cheaper than the real thing, yet they seem to work perfectly well. Possibly they are more reliable than the real thing?
Presumably the "iPhones" sold in Africa actually come from China anyway so what is the point in a gang shipping fake phones from China to the US to be replaced by real phones from China then sending them all the way home again. It would be much cheaper for them to fill a container with the fake phones then switch it for a container of real ones before they even left China. I guess the fact that the death penalty is more likely to be carried out in China than in he US may be a major deterrent.
The returns were broken, so Apple couldn't tell they were fakes without tearing them down. Also, they had to be busted to qualify for replacement rather than repair. Lastly, I'd expect the genuine units Apple provided still commanded a premium in the Chinese market vs. the working fakes.
the idea was to re-sell them overseas at greatly inflated prices. As you pointed out, the genuine Apple product may be worth a LOT more "over there" than "over here", or so I recall from what I heard on the radio.
Being as it is a somewhat local issue (here in San Diego) i heard about it from more local news sources yesterday. And the Apple fans that I know, having purchased them within the last few years, could easily have ended up with fakes in lieu of real ones.
Hopefully this was just restricted to the 'return for repair' scam, so that you don't have a mass recall of iProducts to make sure that no fakes are out there...
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