Beijing Police Shut Down Massive iPhone Counterfeiting Operation
Beijing police shut down a massive iPhone counterfeiting operation where nine people were arrested.
The Guardian reports Beijing officials raided a factory that produced over 41,000 fake iPhones worth $19 million. The factory was run by a husband-and-wife team under the cover of a gadget maintenance shop. Their six assembly lines were set up in January, employing hundreds of workers to piece together secondhand smartphone parts to pass off as iPhones for the export market. The raid took place on May 14.
According to the Globe and Mail, Apple is the most popular brand in China and has been counterfeited many times. Authorities in China are starting to crack down on all fake Apple products. The country has been known for turning out counterfeit goods. According to Fortune, the International Chamber of Commerce estimated the global value of all counterfeit goods reached $1.7 trillion, and China accounted for 70 percent of all counterfeits seized globally.
The police also seized 1,400 fake headsets and accessories during the raid. Chinese authorities said they received a tip from United States authorities after they found the fake devices as well.
This is not the first time Apple products have been counterfeited. In 2012, trade official seized 22 fake iPhones in the city of Kunming. What's interesting about this counterfeiting scam is the employees thought they were working for Apple.
Chinese authorities have not given out any additional information on the crime, nor has Apple given any comment on the situation. Apple relies on China since it's the second largest market after the United States.
The destination of the counterfeited phones remains unknown. The ringleaders of the crime are expected to stand trial in the coming months.
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