iFraud

  • By Louise Watt Associated Press
  • Thursday, July 21, 2011 11:44am
  • Business

BEIJING — It looks almost exactly like a sleek Apple store. Sales assistants in blue T-shirts with the company’s logo chat with customers. Signs advertising the iPad 2 hang on the white walls. Outside, the famous logo sits next to the words “Apple Store” — one of the few clues that the whole thing is a fake.

China, long known for producing counterfeit consumer gadgets, software and brand name clothing, has reached a new piracy milestone — fake Apple stores.

An American who lives in Kunming in southern Yunnan province said Thursday that she and her husband stumbled on three shops masquerading as bona fide Apple stores in the city a few days ago. She took photos and posted them on her BirdAbroad blog.

The 27-year-old blogger, who spoke on condition of anonymity, said the setup of the stores was so convincing that the employees themselves seemed to believe they worked for Apple.

“It had the classic Apple store winding staircase and weird upstairs sitting area. The employees were even wearing those blue T-shirts with the chunky Apple name tags around their necks,” she wrote on her blog.

“But some things were just not right: the stairs were poorly made. The walls hadn’t been painted properly. Apple never writes ‘Apple Store’ on its signs — it just puts up the glowing, iconic fruit.”

A worker at the fake Apple store on Zhengyi Road in Kunming, which most of the photos of the BirdAbroad blog show, told The Associated Press that they are an “Apple store” before hanging up.

But the three stores are not among the authorized resellers listed on Apple Inc.’s website. The maker of the iPhone and other hit gadgets has four company stores in China — two in Beijing and two in Shanghai — and various official resellers.

Amy Bessette, a spokeswoman for the Cupertino, California-based company, said it had no comment on the Chinese stores, but pointed to a Web page on Apple’s Chinese site that lists its authorized resellers.

The manager of an authorized reseller in Kunming, who gave only his surname, Zhang, said most customers have no idea the stores are fake.

Some of the staff in the stores “can’t even operate computers properly or tell you all the functions of the mobile phone,” he said.

“There are more and more of these fake stores in Kunming. Although they may sell real Apple products, some of those products were not imported through legal means.”

The proliferation of the fake stores underlines the slow progress that China’s government is making in countering a culture of rampant piracy and widespread production of bogus goods that is a major irritant in relations with trading partners.

China’s Commerce Minister promised American executives earlier this year that the latest of several crackdowns on product piracy would deliver lasting results.

China’s official Xinhua News Agency reported this month that police arrested more than 9,000 suspects in a nine-month anti-piracy campaign as it shut down more than 12,000 factories that produced counterfeit goods. China’s supreme court said this spring that the nation’s judicial system rendered verdicts last year in more than 40,000 intellectual property cases involving property with a combined value of almost 8 billion yuan ($1.2 billion).

Fake Apple stores are a “particularly egregious example” of brand piracy, but their emergence is not surprising given the amount of product counterfeiting faced by corporations such as Apple, said Ted Dean, president of BDA China Ltd., a telecommunications market research company. He said he once saw a fake Apple phone in China that had an apple logo — but with no bite taken out of it.

Apple said this week that China was “very key” to its record earnings and revenue in the quarter that ended in June.

Revenue was up more than six times from a year earlier to $3.8 billion in the area comprising China, Hong Kong and Taiwan, Apple’s Chief Operating Officer Timothy Cook said in a conference call on Tuesday.

“I firmly believe that we’re just scratching the surface right now. I think there is an incredible opportunity for Apple there,” Cook said.

The company plans to open two more Apple stores in greater China — one in Shanghai and another in Hong Kong — by the end of the year.

Trade groups say illegal Chinese copying of music, designer clothing and other goods costs legitimate producers billions of dollars a year in lost potential sales. The American Chamber of Commerce in China says 70 percent of its member companies consider Beijing’s enforcement of patents, trademarks and copyrights ineffective.

Piracy is especially sensitive at a time when Washington and other Western governments are trying to create jobs by boosting exports. In 2009, the World Trade Organization upheld a U.S. complaint that Beijing was violating trade commitments by failing to root out the problem.

Rampant copying also has hampered Beijing’s efforts to attract technology industries because businesspeople say companies are reluctant to do high-level research in China or bring in advanced designs for fear of theft.

Online:

Blog post

Apple’s authorized resellers in China

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Izaac Escalante-Alvarez unpacks a new milling machine at the new Boeing machinists union’s apprentice training center on Friday, June 6, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing Machinists union training center opens in Everett

The new center aims to give workers an inside track at Boeing jobs.

Some SnoCo stores see shortages after cyberattack on grocery supplier

Some stores, such as Whole Foods and US Foods CHEF’STORE, informed customers that some items may be temporarily unavailable.

People take photos and videos as the first Frontier Arlines flight arrives at Paine Field Airport under a water cannon salute on Monday, June 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Water cannons salute Frontier on its first day at Paine Field

Frontier Airlines joins Alaska Airlines in offering service Snohomish County passengers.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

A standard jet fuel, left, burns with extensive smoke output while a 50 percent SAF drop-in jet fuel, right, puts off less smoke during a demonstration of the difference in fuel emissions on Tuesday, March 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Sustainable aviation fuel center gets funding boost

A planned research and development center focused on sustainable aviation… Continue reading

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

FILE — Jet fuselages at Boeing’s fabrication site in Everett, Wash., Sept. 28, 2022. Some recently manufactured Boeing and Airbus jets have components made from titanium that was sold using fake documentation verifying the material’s authenticity, according to a supplier for the plane makers. (Jovelle Tamayo/The New York Times)
Boeing adding new space in Everett despite worker reduction

Boeing is expanding the amount of space it occupies in… Continue reading

Water drips from an Alaska Airlines Boeing 737 after it received a water salute while becoming the first scheduled 737 arrival Thursday, Feb. 17, 2022, at Paine Field Airport in Everett, Washington. (Ryan Berry / The Herald)
Boeing and Airbus forecast strong demand for their jets

Boeing and Airbus project more than 40,000 new jets are needed.

Hundreds wait in line to order after the grand opening of Dick’s Drive-In’s new location in Everett on Thursday, June 12, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Dick’s Drive-In throws a party for opening day in Everett

More than 150 people showed up to celebrate the grand opening for the newest Dick’s in Snohomish County.

Patrick Russell, left, Jill Russell and their son Jackson Russell of Lake Stevens enjoy Dick’s burgers on their way home from Seattle on Friday, Sept. 22, 2023 in Edmonds, Washington. The family said the announcement of the Dick’s location in Everett “is amazing” and they will be stopping by whenever it opens in 2025. (Olivia Vanni / The Herald)
Dick’s Drive-In announces details for Thursday’s grand opening in Everett

Dick’s will celebrate its second Snohomish County location with four days of festivities.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.