Forget Fake Steve Jobs. The fake iPhone is here. According to Bloomberg, there is the beginning of a booming market for counterfeit Apple (NASDAQ: AAPL) iPhones in Taiwan and China. "With a touch-screen and Apple Inc.'s logo on the back, the iClones look just like the real thing," the story says.
Apple will probably not offer the iPhone in Asia until next year.
The news points out the Chinese dexterity in stealing consumers electronics designs and it is a significant threat to Apple. China has the world's largest cellphone market and China Mobile (NYSE: CHL) is the world's largest cellphone company. And, the phones are being sold into markets including Australia and the U.S.
The fake phones have two advantages. First, they are less expensive than iPhones. Second, they can work on networks outside AT&T (NYSE: T), which currently has the U.S. exclusive for the hot handset.
Steve Jobs may want to take a look over at Microsoft (NASDAQ: MSFT), which claims that about 85% of the copies of Windows sold in China are counterfeit. That represents hundreds of millions of dollars in lost revenue, perhaps more.
Now, it's Apple's turn to fight the pirates.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
9-11-2007 @ 12:50PM
Joe said...
No big secret here.. when I was over in China in January. I bought iPod knock-offs for an equivalent of $12 US
9-11-2007 @ 4:05PM
macaroni said...
I believe these phones do not sport the iPhone operating system. I don't think Apple would worry a bit about some look-alike phones running an unrelated os.
9-11-2007 @ 4:08PM
ToughTimesOuch said...
It was only a matter of time.
9-11-2007 @ 5:33PM
thedude said...
Good news for Apple! Remember: Imitation is the sincerest form of flattery.
9-11-2007 @ 8:00PM
George Linder said...
Somebody is making these in some sophisicated plant not in some garage. The source should and could be located and then stopped.
9-12-2007 @ 10:30AM
Taylor said...
Apple eagerly off-shored it's production to cheaper labor markets, now is whining about the fact that those countries have no interest in enforcing copyrights or patents.
Didn't this occur to them when they set up their production sites ? When companies produce in China, the Chinese government requires a 100% technology transfer for everything in the factory. Software, firmware, mechanical diagrams, chemical processes, all of it. Any changes have to be documented and conveyed or risk being shut down.
Hence China can produce virtually anything we make there entirely on it's own should they decide to do so. Utter stupidity for a technology company. They also have the most sophisticated and elaborate network for industrial espionage.
I have no sympathy for companies who engage in unbridled corporate greed, then complain when it catches up to them.
Maybe they should produce more of their products here where their intellectual properties rights will be enforced.