Beijing police have closed down a counterfeit iPhone factory that has produced more than 41,000 knockoff handsets worth as much as 120 million yuan ($19 million). Nine people have also been arrested in connection with the operation.
Knockoff Apple products are big business in China, where devices like the iPhone see incredible demand. But as Apple has increased its presence locally and made the Chinese market a priority, authorities have been cracking down on counterfeit goods.
“Police arrested nine people, including a married couple who led the operation, after a raid in May on the factory, run under the guise of a gadget maintenance shop on the northern outskirts of the Chinese capital,” reports Business Insider. The details were revealed in a social media post on Sunday.
A 43-year old man, surnamed Yu, and his 40-year old wife, surnamed Xie, set up the factory with six assembly lines, and employed “hundreds” of workers who repackaged secondhand smartphone components as iPhones.
Some of the devices were even exported to the U.S., and it was the U.S. authorities that tipped off Beijing police. 1,400 counterfeit iPhones were seized during the raid, along with large quantities of accessories. Apple has declined to comment on the bust.
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