Beijing Authorities Put Kibosh On Massive $19 Million iPhone Counterfeit Operation

More than 41,000 fake iPhones have been scooped up by Chinese authorities in a massive bust, thanks to a tip from U.S. officials. Beijing police picked up at least nine people believed to be involved in the operation, which involved a small factory posing as an electronics retailer.

It’s not clear where the fake iPhones were being shipped, though the tip from American officials could indicate that some of the phones reached the U.S. That’s likely a question Beijing authorities will be putting to the couple who ran the counterfeit operation. The two apparently had as many as six assembly lines, which were operated by hundreds of workers. The phones included second-hand components and could have been worth as much as $19 million.

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Beijing authorities arrested a total of nine people in the scam, which was run near the capital. The factory raid actually happened in May, but the public security bureau in Beijing broke the news yesterday on social media.

China isn’t new to knockoff scandals – in fact, it’s home to some particularly bold frauds, including fake Apple stores that weren’t shut down until an American expatriate stumbled across them and uploaded pictures to social media. China has since been tougher (though clearly, not tough enough) on businesses that engage in manufacturing fraudulent products.
Joshua Gulick

Joshua Gulick

Josh cut his teeth (and hands) on his first PC upgrade in 2000 and was instantly hooked on all things tech. He took a degree in English and tech writing with him to Computer Power User Magazine and spent years reviewing high-end workstations and gaming systems, processors, motherboards, memory and video cards. His enthusiasm for PC hardware also made him a natural fit for covering the burgeoning modding community, and he wrote CPU’s “Mad Reader Mod” cover stories from the series’ inception until becoming the publication editor for Smart Computing Magazine.  A few years ago, he returned to his first love, reviewing smoking-hot PCs and components, for HotHardware. When he’s not agonizing over benchmark scores, Josh is either running (very slowly) or spending time with family.