Authorities in China have smashed a fake iphone production group and arrested 5 people. Police said those arrested were part of an organized gang that bought components for the phones from Guangdong in southern China and assembled them in rented apartments in Shanghai in the Zhabei district

About 200 fake iPhones were found during the crackdown, amounting to almost $750,000 US. The cost to make one fake iPhone, which used some genuine parts, was around 2,000 yuan, It was then sold on unauthorized markets and on the Internet for around 4,000 yuan, only a few hundred yuan cheaper than the real iPhone, the newspaper said.

Apple, which is expected to release the latest version of the iPhone 5 within a few months, sold a record 20.34 million iPhones worldwide during the last quarter, even though its newest model is over a year old.

Posted in: Apple Online News