The truth behind Apple’s suppliers in China (Part 1)

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A big misunderstanding broke out last night when I published a tweet saying the following.

Let me straighten things out.

In HUA Qiang North Market, the heart of asia’s electronics market, there is a building called YuanWang Digital Mall.

There are dozens of iPhone 5 & 6, iPads, and Macs such as Mac Mini’s and Macbook’s. These units vary from real, and fake units. All the real units and all their accessories are  being showcased and traded throughout that mall, and later sold and distributed around the whole world. Almost all the goods there are smuggled goods from HK, due to 17% tax at China customs, so smuggling to avoid high tax is very very profitable.

On May 27th, Shen Zhen Customs (Shenzhen anti-smuggling governing body), and Hua Qiang street authorities, stormed the YuanWang Mall to try to catch some of those smugglers and whoever was said to sell Apple/Samsung/Nokia/etc units, or fake Apple/Samsung/Nokia units. More than 120 government officials are involved in this operation.

Apple may have had a role in this raid, since Apple have the ability to track all serials & activations between HK and China.

There are 3 major smugglers and sellers who own 10 warehouses, 38 shops inside the mall, and around the area have been caught. During these operations more than 2 thousand people witnessed the whole raid, making it such a scene in the area.

Thousands of Apple and Samsung products have been confiscated on that one single day. They found out that one smugglers caught, had trafficked more than 10mil RMB  (roughly 1.8mil USD) worth of goods since Feb-2014, and that should be a number in the low end.

Apple may not want to see some of the iPhone 6 accessories floating around the world prior to its release. Apple had already turned a blind eye on all the accessory makers for having made iPhone 5/5s/5c cases public prior their announcements.

Foxconn has said to been secretly selling old generation Apple parts or disassembled Apple parts in HK, and have been doing this for a very, very long time.

There are photos of millions of refurbished iPad digitizers, hundreds of thousands of iPad batteries are offered in bulk, and they could be easily purchased in HK.

Just to show you how Apple and Foxconn really have been dealing with high-cost recovery electronic waste. They don’t care who gets their hands on them and what would be done to it.  This is the channel how so many genuine iPhone 5 screens flooded the market so early..

We assume that Apple wants to and will move all their manufacturing OUT of China to prevent leaks, and give US citizen a proper job that they’ll be proud of.


  • http://www.breathezy.com/ Breathezy

    Hey Sonny, missing your regular scoop and news items. Any news about the iPhone 6 or next gen IPad?

  • Graham Warner

    Pedant alert:

    “There are dozens of iPhone 5 & 6, iPads, and Macs such as Mac Mini’s and Macbook’s. ” Who are Mac Mini and Macbook and what do they own? You meant, of course, ” Mac Minis and Macbooks” no apostrophe! If journalists can’t get it right.

  • Charismatron

    Looking forward to part two.

    Just as an aside, this piece has a number of grammatical errors in it; if you should happen to require a proof reader to help you out, I’d be happy to volunteer. :)

    Cheers!

    • jΔy

      Wow…