Counterfeit iPhone Has Legitimate Manufacturers Troubled

By Lin Yuguo, Central News Agency
October 11, 2007 12:00 am Last Updated: October 11, 2007 12:00 am

HONG KONG—With the overwhelming global popularity of iPhones, many illegal businessmen in Shenzhen, China are producing counterfeits. Not only do these businesses produce a lot of fake iPhones, they also produce “new model” iPhones.

According to Oriental Daily News, the volume of production of fake electronic products in underground factories in Shenzhen is shocking. These factories not only counterfeit famous brands, but also the not so famous. In fact, these underground factories also suffer from piracy.

It was noted that the first underground factory to counterfeit China Electronic Communication Technology (CECT) products excelled in the business of fake mobile phones, and made great profits. CECT is a trusted brand name for retailers and consumers, resulting in a proliferation of underground factories producing fake CECT mobile phones. They are all over the Pearl River Delta (PRD).

CECT is headquartered in Beijing. It belongs to China Electronic Communication Technology Co., Ltd. of Hong Kong; its investors are from Hong Kong. The first underground factory that counterfeited CECT brands is located in Dongguan, Guangdong Province. At present, CECT is a trademark that almost all underground factories in the PRD counterfeit.

To meet iPhone demand, an underground factory produces a lot of fake iPhones under the CECT name. These phones cost between 600 to 2,000 yuan (approximately US$72.50 to $241.50).

Recently, a gentleman from Hong Kong bought what he thought was the latest iPhone, model Q380, which was strongly recommended by an electronics store salesperson in Shenzhen. The salesperson claimed it was the latest official model, costing 680 yuan (approximately US$82.00), and could be returned within 3 months if it was broken. The gentleman found the sound too loud after buying it. He checked the official website, only to find that he had been cheated because apparently there was no official model for the so-called iPhone Q380.

A reporter for Oriental Daily News found that many workers in an industrial district in Shenzhen were moving packaged mobile phones. The workers told the reporter that the mobile phones they produce are “brand-sticking” phones—whatever brands customers want, that's the logo they put on the phones.

An employee at the Shenzhen Municipal Commerce and Industry Bureau said that they haven't received any complaints of counterfeit iPhones; but they will pay attention to the situation and will take appropriate action if it is verified.