Apple in China: Has Apple Been Scammed in this Market?

Apple in China: Over the past few weeks, we have been talking quite a bit about Apple Inc. (NASDAQ:AAPL) and its presence in China. While the Cupertino-based company is looking to make a strong push in this market, it has faced tough times as of late.

If you are unsure of what Apple Inc. (NASDAQ:AAPL) has been up against in China as of late, check out this story here as well as this one here.

Here is a brief excerpt from one of our past stories:

“In short, Apple is in hot water for its warranty practices in China. Along with this, local journalists don’t care for the way they have been treated by the company as of late.”

In other words, Apple Inc. (NASDAQ:AAPL) did a good job making the people of China mad as well as journalists from the country.

Now, it appears that Apple is on the wrong end of the stick.

Here is a story from Tech In Asia explaining what is going on: Scammers in China Exploit Apple to Turn Fake iPhones into Real Ones

In other words, some people are using “Apple’s return system to turn more than 100 fake iPhones into real ones.”

Image: Apple Inc. (NASDAQ:AAPL) Store

This is ironic, considering the fact that Apple has come under such intense fire for its recent practices in China. Unfortunately for the tech giant, there are criminals who are aware of this. Subsequently, they can use the system to their advantage.

Here is some more information from the same Tech In Asia piece:

“The scam saw a Wenzhou Apple shop owner turning in what he claimed were 121 iPhone 4S BAND parts (the core of the phone, worth about $476 each) that were broken and asking that they be replaced back in December of 2012. Apple complied, but in January discovered that the parts he submitted as broken were actually counterfeits. They reported this to the shop, which claimed innocence and reported the case to the police.”

Although the case dragged on for a few months, one of the shop’s engineers were eventually arrested along with a number of other employees involved in the scam.

With all this in mind, Apple Inc. (NASDAQ:AAPL) will definitely need to take a closer look at how it is handling returns in China. Along with this, the company has to be worried about the number of fake iPhones on the market.

What are your thoughts on this? Share your opinion in the comment section below.

Check back here for more updates on Apple in China.

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