Report details Apple’s struggles to tackle iPhone repair fraud in China, which cost Apple billions of dollars a year

The Information is reporting today on Apple’s five-year struggle to tackle iPhone repair fraud. The scheme centres around crime gangs who were buying or stealing iPhones, removing valuable parts like CPUs and screens, and then claiming their devices were broken at Apple Stores and getting the Genius to replace them under warranty. The parts were then sold on.

At its peak, Apple was seeing 60% of warranty repairs in China and Hong Kong as being fraudulent, literally costing Apple billions of dollars per year. Apple first started taking the problem seriously in 2013, and the report goes on to detail the cat and mouse game that then ensued between the criminals and Apple as the company tried to tackle iPhone repair fraud …

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