Apple Said to Have 'Dramatically Reduced' Multi-Billion-Dollar iPhone Repair Fraud in China

[jpn]

No, this makes right to repair laws harder to push for. As it makes it harder for companies to prevent fraud as it forces companies to honor third party repairs and to prove that the third party repair and/or component is responsible for the exact issue at hand.

DRM on parts and techniques like Apple used here are predicated on genuine parts and repairs to prevent the fraud.

It is probably a strong reason we are seeing what Apple is supposed to be starting up with the T2 chip in the 2018 MBP that was covered extensively here a few weeks ago.

You and I are totally in agreement on this.
And only apple stands a chance to make it happen since it owns the other links in the chain: operating software, app store, retail locations, apple care service, trade-in program for used devices, and sales of final devices at a controlled selling price.
So it as now time for the earlier component supply chain security.

Pls hurry apple. It's already very late.
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Wait. People with suitcases of iPhones standing outside a store... and the staff are still replacing them?

Yes. It sounds incredible to you but in China what would happen if apple cracked down on it abruptly or more quickly and decisively than what you are used to in Western countries would be: massive demonstrations by these people being paid to act as if they were being discriminated against by the USAmerican Big Unfair Company. Even to the point of violent demonstrations.
First apple needed to get the Chinese authorities on board.
It appears that it took some time but finally apple succeeded in that.
Orchestrated demonstrations against USA and Japanese companies have occurred in the not too distannt past.
And some have speculated that the Chinese government itself has even whipped up crowds so that demonstrations would happen.

 

[arobert3434]

We spent three weeks in China. The guides said crimes involving fraud, such as selling a Ming Dynasty relic to tourists that was made yesterday, considered a skill. Attacking someone, or crimes against the State, punishable. Outsmarting Apple, a skill, they should be more vigilant in their business practices. Not all places in the world follow our ethical guidelines.

Reminds me of one time I was in China visiting the Great Wall and trying to find a bus back. I kept running into taxi and private minibus drivers and they all said, "There are no buses at all". Eventually I found the stop in the parking lot. I told a Chinese friend about it the next day how shocked I was that people would point-blank lie to a stranger like that and she shrugged, and said, "That's just business," like it was completely normal and not wrong at all. Different ethics, always has been, probably will be for a long time to come. Hard to not be judgemental, but I guess these things ARE culturally relative...

 

[gabizou]

It's funny that this is being mentioned now. Used to work at an apple store's Genius Bar, and we'd probably handle 30 fake phones being shipped out per day during the "learning" periods. The organization of these people is incredible, they maintain hundreds of email addresses, usually using the same name half the time for the "pickup".

Myself having the moral conscience, I found various ways to outright deny repairs by using policies and what's called "Visual Mechanical Inspection". Usually could see that a font was copied poorly, spacing was off, or missing/incorrect symbols printed for the region of which the phone was "sold" according to the serial number. Best part yet, when people started bringing in fake swollen battery phones with iPhone 8 Plus's (they always liked to use plus size phones: 6s+, 7+, 8+), the saboteurs didn't really realize that you can just lift the top of the phone to pop off the display assembly and expose the air inflated battery without labeling or apple markings.

To say that the situation has been bad is an understatement. The scam goes beyond just getting phones replaced, it's also going as far as scammed gift cards for full unit replacements with water damage or broken enclosures. Always had to submit reports to an internal department targeting these acts.

That being said, it's good to hear that it's improving, because nothing pissed me off more as an employee at the Genius Bar when I'd see 7 people in our queue with three appointments each, taking time away from people who actually have issues (like cracked screens, or battery replacements, etc.) that I could otherwise help.

 

[joueboy]

I used to hear Apple says we do this for the name of safety. Now they're admitting that they're losing billions of dollars of extra revenue on top of telling people that some they need to buy a discounted new device because they're unwilling to fix it.

 

[I7guy]

I used to hear Apple says we do this for the name of safety. Now they're admitting that they're losing billions of dollars of extra revenue on top of telling people that some they need to buy a discounted new device because they're unwilling to fix it.

So what are you saying? Apple shouldn’t do anything to combat high tech thievery? Especially the type that causes a ripple effect down to the customer?

 

[cyberlocke]

Right at the embassy in Beijing on Dongzhimenwei Dajie for 4 years.

The West still has an ethics system descended from concepts of Christian guilt. Other places don't have this.

Canada has suffered greatly from this clash of cultures. Chinese soft power has completely corrupted our political system.

I wouldn't call it guilt, but actual right and wrong (I mean, the crooks were being dishonest). Otherwise you wouldn't be able to call Canada's system "corrupt," just different.

 

[Brian Y]

This kind of thing really isn't limited to China.

Here in the UK, we used to get lots of stolen phones brought in as "won't power on". You always knew since the name didn't match, and the customers usually fit a certain profile, but nothing we could do.

Then they brought in voltage testing (i.e. to see if the logic board had been fried purposefully). Turns out they were microwaving stolen phones. And now, they've also stopped servicing phones where find my iPhone is turned on, which helps too.

 

[ILikeAllOS]

How the hell did they manage to get a third party processor to boot the phone and actually make it usable to show?

Who said it booted? All the article says is that the fraudsters would replace the parts with fakes and then hand it to an actor to walk into an Apple Store and pretend that it is broken. Presumably it didn't boot up, which is how they were able to convince the employee that the phone was defective.

 

[Onexy]

What a ridiculous contribution.

Have you not read about how Apple wants to force its overpriced and terrible 'repair' service onto users by blocking 3rd party repair with the T2?

These fraudsters didn't even put a dent into anyone's wallet. And who even cares about big money's loss of 0.0001%...

 

[Tech198]

Damn - geez some people think outside the box . I feel bad about making a AppleCare claim lol

Nothing about about being outside the box... You get to see more light, for one.