$6,000 jewelry vendors are selling counterfeit iPhones and iPads
Posted On June 20, 2021
The price of a counterfeit iPhone or iPad can skyrocket in China, and if you’re looking to sell them for a profit, it’s a pretty easy sell.
According to a new report from the Chinese online marketplace Baidu, there are a whopping 1,000 vendors who sell counterfeit iPhones, iPads, and other devices in China.
The vendors sell their goods through China’s “Fakeware” market, where counterfeit goods are sold for less than $6 each.
“We can’t verify the authenticity of the goods sold in China,” said the report’s author, Xiao Jianqi, who’s working to track down the vendors.
“But we do know the counterfeiters are making a living from their counterfeit goods.
We are working with a number of them to track them down.”
The site also includes the names of vendors who have been arrested or detained in China for selling counterfeit goods in the country.
The counterfeiters, Xiao said, are selling the items in large quantities.
“In many cases, the counterfeit goods sell for over $5,000,” Xiao said.
“The counterfeiters often take advantage of a market that is very popular for counterfeit goods, like China’s booming fakeware market.”
The report includes the name of one of the counterfeit vendors, who said he sells the devices at a price of $10,000, though he doesn’t specify how much he charges.
“Some of the vendors are willing to sell their wares for as little as $1,000.
But there are also people who are willing, willing to pay as much as $10 or $20 for a counterfeit device,” Xiao added.
“There are some very wealthy people in China who have the money to buy a fake device for $1 million.”
China has long been plagued by counterfeit goods that are easily counterfeited and sold for hundreds of thousands of dollars.
The latest counterfeiters to find their way into the Chinese market are making money, Xiao explained.
“This counterfeiters don’t have to sell the devices to make money, they can just sell them to consumers and that’s what they do,” Xiao told TechRadars.
“They’re making money out of people’s fears, and the fear is very real.”
It’s difficult to track which vendors are involved in the counterfeiting trade, Xiao added, but he believes they are all working together.
“Most counterfeiters in China work in the fakeware business, but the people who sell the counterfeit devices, these people are not working together,” Xiao noted.
“These are not the same people that are doing the counterfeit in China.”
Xiao said that the counterfeit sellers are usually operating in the cities of Beijing and Shanghai, where there is a huge fakeware supply.
The sites also list the vendors’ locations.
Xiao said he’s working with the authorities to track the sellers down.
“I have been trying to contact the sellers in China and have asked them to come forward and explain how they’re making a profit from their goods,” Xiao explained, noting that if the sellers don’t provide any further information, they could face criminal charges.
He said the counterfeit buyers are usually paid in Bitcoin, a currency that is relatively new in China but that is still gaining popularity in the Chinese counterfeit marketplace.
“If you are not familiar with Bitcoin, it is the digital currency that was created in 2008 that was designed to be a peer-to-peer payment system, so that people can buy goods directly from merchants in their local area,” Xiao warned.
“Bitcoin is used for many different things, including to buy and sell goods, and for online services like the marketplace.”
He said counterfeiters would use the currency to buy more devices and sell them at a higher price to make a profit.
The report notes that some of the websites selling counterfeit products in China appear to be operated by the same person or company, but they don’t necessarily have the same business model.
“It’s hard to say whether the fake sellers are working together or whether they are just making a money-making venture,” Xiao cautioned.
“You will never know.”