![]() ![]() ![]() Jiang told authorities that he regularly received packages with 20 to 30 iphones from "an associate" in China with instructions to submit them to Apple under warranty claims. At a cost of $600 per iPhone, according to the company's estimates, those replacements resulted in losses of $895,800 for the tech giant, the government said.Īpple did not immediately respond to CNBC Make It's request for comment. ![]() While Apple was able to determine that many of the counterfeit iPhones Jiang submitted were not authentic, the company still accepted 1,493 of the phones the student sent in as authentic and provided him with replacement iPhones. "Submission of an iPhone that will not power on is critical to perpetuating iPhone warranty fraud, as the phone will not be able to be immediately examined or repaired by Apple technicians," and the company will often have to send a replacement iPhone under its warranty policy, the government wrote in its complaint. In every case, Jiang claimed that the iPhones could not be turned on, which turned out to be the crux of the scam, according to the government. Jiang, who was reportedly a student at Oregon State University at the time, estimated that he submitted over 2,000 warranty claims in 2017 alone, the government said, and Apple's records show over 3,000 claims in total attributed to Jiang. ![]()
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