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Apple Said To Have 'Dramatically Reduced' Multi-Billion-Dollar iPhone Repair Fraud in China (macrumors.com)

From a report: Within the past four years, Apple has managed to "dramatically reduce" the rate of iPhone-related repair fraud in its retail stores in China, according to The Information's Wayne Ma. The report is based on interviews with more than a dozen former Apple employees who spoke on condition of anonymity. In 2013, Apple is said to have discovered a highly sophisticated fraud scheme in which organized thieves would buy or steal iPhones, remove valuable components like the processor or logic board, swap in fake components, and return the "broken" iPhones to receive replacements they could resell. From the report: "Thieves would stand outside stores with suitcases full of iPhones with some of the original components stripped out and replaced with inferior parts, two of the people said. The fraudsters would hire people to pretend to be customers to return them, each taking a device to stand in line at the Genius Bar, the people said. Once the phones were swapped, the actors would pass the new phones to the fraudsters and get paid for their time, the people said."

2 of 87 comments (clear)

  1. No wonder!!! by sentiblue · · Score: 4, Insightful

    So for a long time I kinda didn't like how Apple would disable iPhones because they were not repaired by authorized dealers or by Apple itself. I thought Apple was trying to monopolize the repair works to itself... Now that I read this article, I see what kind of battle they've been trying to fight.

  2. Cut Out the Middle Man? by Kunedog · · Score: 4, Insightful

    Apple is said to have discovered a highly sophisticated fraud scheme in which organized thieves would buy or steal iPhones, remove valuable components like the processor or logic board, swap in fake components, and return the "broken" iPhones to receive replacements they could resell.

    How about simply selling the bought/stolen iphones instead? I don't understand the scam, unless they are removing enough parts over time to occasionally construct a whole iphone. And even then I don't understand.

    Is this just propaganda pushing a narrative to justify Apple locking out third-party repair services?