It has been reported in San Francisco, California, USA, that due to many fraudulent iPhone repairs claims in China, it has cost Apple billions of dollars. This loss has been made over a long period of five years, as has been reported by the information. This has been done by some highly sophisticated teams dealing with frauds.
These teams are organized. They proceed by first buying or stealing iPhones. And then they remove the most valuable components inside them This includes components like CPUs, screens and even logic boards. Then, after taking out the genuine parts, these people replace them with counterfeit or fake ones. The report also said that half a dozen former employees that used to work for Apple, is very much in line with this fraud and knows how it works.
After this action, the thieves would then return these changed iPhones to the iPhone Repairs Melbourne service center. After returning them, these people would claim that the iPhones are broken. After receiving the required replacements for each of the valuable components, the thieves would again resell the valuable parts.
It was also reported that at the peak of these fraudulent transactions, Apple believed that almost 60 percent of all of its iPhone repairs in China and Hong Kong are fraudulent. It was in the year 2013, that Apple had set aside a specific sum for all types of warranty costs and also repair costs as well. The amount was reposted to be $1.6 billion. The amount has been reported by the popular Apple news website, 9to5mac.
But, it was due to these types of fraudulent repairs that the cost all kinds of repairs exceeded that expectation of Apple. The overall cost was almost close to $3.7 billion.
The extra had to be rightfully paid by Apple in that specific period, as said by the report. Also, it was due to these fraudulent repairs, Apple started to tighten up the rules and regulations for repairs. This was done in order to check and also curb the number of fraud cases as well. These rules and regulations that were put down by Apple really helped in reducing the number of fraudulent cases. The earlier percentage which was 60, came down all the way up to 20 percent. This was a massive improvement, considering Apple was losing double of the money they set aside for warranty costs and repairs in a quarter.
Nowadays, it has been reported that another technology giant named Cupertino is again facing a similar issue in some other markets. The technology giant is also based in California as well. The areas where this type of issues are happening includes in Turkey and also in the United Arab Emirates.
Therefore, this technology giant should proceed in implementing rules and regulations for warranty repairs like Apple, so that same issues can be easily eliminated. Otherwise, the fraudulent cases will keep on increasing, and it will just harm the company in the process.