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China's Fake Apple Store Sparks Customer Ire; Staff Remains Defiant

China Fake Apple Store

First Posted: 07/22/11 10:18 AM ET Updated: 09/21/11 06:12 AM ET

By Melanie Lee

KUNMING, China (Reuters) - Customers at an Apple Store in the Chinese city of Kunming berated staff and demanded refunds on Friday after the shop was revealed to be an elaborate fake, sparking a media and Internet frenzy.

Long a target of counterfeiters and unauthorized resellers, Apple Inc was alerted to the near flawless fake shop by an American blogger living in the southwestern city, more than 1,000 miles from the nearest genuine Apple stores in Beijing and Shanghai.

"When I heard the news I rushed here immediately to get the receipt, I am so upset," a customer surnamed Wang told Reuters, near tears. "With a store this big, it looks so believable who would have thought it was fake?"

Wang, a petite, 23-year-old office worker who would not give her first name, spent 14,000 yuan ($2,170) last month buying a Macbook Pro 13-inch and a 3G iPhone from the Kunming store. She wasn't issued a receipt at the time, with staff telling her to come back later.

"Where's my receipt, you promised me my receipt last month!" Wang shouted at employees, before being whisked away to an upstairs room.

Staff were also angry at the unwanted attention after more than 1,000 media outlets picked up the story and pictures of the store from the BirdAbroad blog.

"The media is painting us to be a fake store but we don't sell fakes, all our products are real, you can check it yourself," said one employee, who didn't want to give his name.

"There is no Chinese law that says I can't decorate my shop the way I want to decorate it."

UNWANTED ATTENTION

While upset at the coverage and unwilling to be fully identified, staff were cooperative when Reuters visited the store, answering questions and allowing the shop to be filmed.

Another employee, surnamed Yang, said business had been affected, with customers demanding they prove the authenticity of their products.

Apple has declined to comment on the fake store or others like it dotted around China. The Cupertino, California-based firm has just four genuine Apple Stores in Beijing and Shanghai and none in Kunming.

With about 3.2 million inhabitants, Kunming, the capital of the mountainous southwestern province of Yunnan, is small by Chinese standards and not well known in the West.

Located not far the borders of Laos, Vietnam and Myanmar, the city's fast-growing industrial and manufacturing base is emblematic of China's ascent on the world stage.

The fake Apple Store is situated along a crowded pedestrian-only shopping street, its black Apple logo gleaming. Inside, with its Apple posters on the walls and iPads and Macbook computers displayed on wooden tables, the store looks every bit like Apple Stores found all over the world but for some slightly shoddy workmanship and one or two errant details.

Not all customers were bothered by the revelations that the store was not the genuine article.

"As long as their products are real it's okay -- after all, you enter a store not to look at anything except their products," said Hu Junkai, 18. "If the products you buy are real why do you care whether the store is a copy?"

Wang was not convinced.

"The biggest thing I'm upset about is that I spent so much money at this store and I don't even know whether it is real or not," she said.

"What can I do? They aren't going to give me a refund."

(Additional reporting by Royston Chan; Writing by Lincoln Feast; Editing by Alex Richardson)

Copyright 2011 Thomson Reuters. Click for Restrictions

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08:32 AM on 07/26/2011
at least, the fake store was selling genuine apple products....... so far...

hopefully, some customers will be smart enough to identify genuine products, regardless where the products are sold...
Karma2U
Blessed are the Peacemakers
01:59 AM on 07/25/2011
As a person who has three decades of experience dealing with Chinese business owners, this story does not surprise me in the least.
06:05 PM on 07/24/2011
you imitate, make it better, then take over the world.
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lakefront liberal
04:24 PM on 07/24/2011
I doubt these people have valid warranties, can have their computers seviced by Apple, etc. This would be a very big deal in a country where people are spending close to a year's average income on a computer. This is what the Republican led house would have the US like if they got their way--very little consumer protections, regulation of business, environmental standards, food & drug safety, etc, etc. This is what happens in a "Wild West" economy where anything goes. It becomes an "everyone out for themselves" mentality with very little recourse if people get swindled or hurt.
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DTree
Progressive Biconceptualist
04:18 PM on 07/24/2011
From what I understand, the products are not actually Mac OS or iOS... a friend of mine who lives out there says the phones come iPhone cases, but run Android software. Not sure what OS the laptops and desktops run, but I doubt it's OS X.
Deftguy
I train people and rehabilitate dogs
01:38 PM on 07/24/2011
And American companies are just clamoring to get into this environment. Watch, going into the future these American companies are going to lose their shirts behind copies and piracy. All the Chinese want is to copy and learn how high tech works, and they will ditch the American company, and go it on their own. They are going to use American intellectual property to get there.
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KenLowJr
Long on the tooth
04:33 PM on 07/24/2011
Yes, but Japan did it also and now they are one of the leaders in high tech. Also it's impossible to stop reverse engineering. The Soviets did it with our armament, namely aircraft, and were very successful. Remember, Amercian intellectual property in the field of physics and rocketry actually began from Einstein and Von Braun, both foreign born.
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Mupaaat
Who is silent gives consent.
05:42 PM on 07/25/2011
Ah, but Mr. Low, Einstein and Von Braun are irrelevant in this context. We are talking about ripping off American-designed products, ignoring our copyrights, infringing on our patents and trashing our product guarantees.all to make an underhanded dollar. So I have a hard time seeing any connection between fakes and forgeries versus reverse engineering, no matter how one would try to spin it in defense of Chinese tactics.
12:07 PM on 07/24/2011
Apple will not honor a "Fake" warranty. That is the bottom line when buying from nefarious sellers in China. China should be shunned for all the bad they do anyways. No one in the West should have any dealing with them at all.
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DaMojo
"Death eatin' a biskit'
10:36 AM on 07/24/2011
Why aren't they saying what it is that the store is actually selling? They didn't in the previous article either. Are they selling tablets that are not apple and have face apple cases? It says the woman bought a Macbook Pro and an iphone......where they fake? It doesn't say. If the store itself is not an 'official' apple store...who cares? I use macs but I hate going in the store and use the website whenever possible. The apple stores are full of pretentious little pricks.
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mimssandi
04:52 PM on 07/23/2011
The article only says the store is a fake. It does not address the products sold there.
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JohnSawyer
arglebargy
05:03 PM on 07/23/2011
The products may be real, but getting Apple support for them may be difficult. Note the article includes a story about one customer (apparently among many) who wasn't given a receipt, and was told to "come back later", and when she did, they still wouldn't give her a receipt. Whether not getting a receipt would somehow impact Apple support after the sale, I don't know, but it doesn't sound promising.
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KenLowJr
Long on the tooth
02:44 PM on 07/24/2011
Lack of support or warranties is not necessarily an issue of counterfeit but of licensing. That's what makes Apple's silence so far all the more perplexing. Surely many if not all of the products at this unlicensed store are manufactured at many of the same locations that make bona fide Apple products. Take for example the many sellers online that sell products without warranties because because of lack of manufacturer licensing and agreements. Most are genuine articles. There is more to this story than meets the eye and Apple needs to break it's silence and explain.
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JohnSawyer
arglebargy
04:43 PM on 07/23/2011
In the early years of the Mac, before there were Apple Stores, there were a number of non-authorized Apple resellers across the US, selling gray-market Apple hardware and software (though they didn't try to make their stores look like Apple Stores, because there were none). One of the methods they got inventory, was to buy excess inventory from real Apple dealers who bought more than they could sell, in order to get product from Apple at a better quantity discount. Apple knew about this, and cracked down on very few non-authorized resellers, because the gray market allowed Apple to sell more product. The few non-authorized resellers Apple cracked down on, were those that were doing something egregiously dumb or against Apple's interests, or representing Apple products in some way that was off-base, or took public stances against some Apple policies while still selling Apple products. Eventually, Apple decided to start their own chain of stores, and they began to crack down on the non-authorized Apple dealers more and more, until most of them were put out of business.
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JohnSawyer
arglebargy
05:26 PM on 07/23/2011
I don't know how the fake Apple Stores in China get their genuine Apple inventory, but some of it may be through similar purchases of excess inventory previously bought by real Apple Stores, and some of it may be directly from Apple's manufacturers. As to whether this really concerns Apple, or whether Apple just looks the other way as they did before the Apple Stores were established, I don't know. As in the Mac's early days, for the time being, Apple's plan in China may have been to see it as an advantage to have more stores selling Apple products than Apple is currently set up to handle in China, and planned to crack down on the fake Apple Stores eventually, but now that the story has gone public, Apple is likely to crack down now, but they also have to get the Chinese government to work with them to do this.
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LightShadow62
The answers are not found in the extremes
04:42 PM on 07/23/2011
The success of these 'fake' Apple stores shows just how uninformed most Apple users are.
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mimssandi
04:50 PM on 07/23/2011
Most Apple users are not in China. How could they not be uninformed about 1 shop in the back of China? What is your point?
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LightShadow62
The answers are not found in the extremes
05:26 PM on 07/23/2011
That most Apple users don't pay attention to or understand what they are buying or who they are buying it from, they just believe that if it says "Apple" it is perfect.
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xstevejx
11:56 PM on 07/23/2011
Can't you just say "I hate Apple" and get it over with rather than beat around the bush?
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madcityy
01:54 PM on 07/23/2011
apple asked for this........................so sad............
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JohnSawyer
arglebargy
05:00 PM on 07/23/2011
I don't know how Apple asked for this, any more than any of the many other companies whose products or/and stores are counterfeited in China,despite their efforts.
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FiredUpRTG
Don't start no stuff; won't be no stuff…
06:39 PM on 07/23/2011
Wrong angle. Did Louis Vuitton and Chanel bag makers ask for it, too? Knock offs everywhere;……… so sad, huh?……

Not limited to Apple. What makes this a story is whole stores have been knocked off: the look, no obvious sign of inauthenticity, clueless employees. The nerve! That's incredible!
12:50 PM on 07/23/2011
And we are supposed to owe the Chinese 2 trillion? They have stolen intelectual property from us worth much more than that! I have been to China, and you can buy anything, from Microsoft Office ($5.00) to X-boxes for peanuts! All illegal copies. All in department like stores, out there in the open. Even Marlbotough cigarets are counterfeitet! They should owe US money for all they have stolen!
09:51 PM on 07/24/2011
Yes, agreed. China largely seems to be an ethically-challenged country.
08:05 PM on 07/25/2011
US seemed to be an immoral country seeing that the US see no problem in killing people around the world.
12:00 PM on 07/23/2011
停止购买消费类产品,只是因为你知道它的价格昂贵,并希望人们认为你是非常丰富的。
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mimssandi
04:50 PM on 07/23/2011
I agree.
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Aleks Hunter
Keep your greedy Mitt off our country!
10:08 AM on 07/23/2011
Is anyone at all surprised by this? Seriously. Except for the fact that they are not finding many more?

This is the country that we are making ever more technology deals with. Ebay, in spite of their best efforts, is rife with counterfeit products from China ranging from Gucci and Prada bags to Apple computers to Gibson guitars. When it comes to pirating intellectual property, China is an equal opportunity country.