Shanghai Activist Accuses Apple of Selling Used iPhones

October 26, 2011 -

A Shanghai activist is accusing Apple's Beijing store of passing old iPhones as brand new. According to a story in the Shanghai Daily, activist Wang Hai - who is representing two citizens - filed a lawsuit against Apple in a Chinese court accusing the firm of selling refurbished iPhones. Both purchases were made at the company's store in Beijing, China.

Hai claims that two consumers each bought what they thought was a brand new iPhone in July of this year with one year warranties. When they used the serial numbers on their phone to check the warranty they found that there was only six months left on it instead of one year.

This fact, says Hai, is proof that Apple knowingly sold used phones to customers as new.

"It is a very serious discrimination to Chinese consumers, because refurbished phones are being sold at cheaper prices abroad, but the same as new ones in China," Hai told the paper.

We'll let you know how this all plays out.

Source: MCV


Comments

Re: Shanghai Activist Accuses Apple of Selling Used iPhones

Doesn't really surprise me. This isn't on Apple, but the store. A certain large electronics retailer here in the US will do the same thing, at least at locations where the store manager is willing to break a few rules and strategically neglect paperwork.

Basic process: Broken out-of-warranty items come in, owners are offered to buy a replacement because repairs will take time or be almost as much as a new item (which, between sending them back to the manufacturer or immensely inflated repair charges, is true). Anyone who accepts the new replacement offer, their item is then disassembled for parts. Two broken iPhones can easily make one working one, plus plenty of leftover parts to fix items for customers that didn't accept the replacement offer, rather than buying replacement parts.

Working items from this process like game systems, TVs, or computers are generally sold as used, but phones are special. Most buyers aren't just taking the phone in the box, they're actually having us activate it on their number and they're walking out with a functioning phone in their pocket. So a rebuilt phone can be passed off as new as long as there's no scuffs on the case. Plus, new buyers regularly leave the box behind, meaning rebuilt phones can be put in the box and then shelved as "New/Returned - Opened Package," which is a mark down, but not nearly as much as a used phone... and the parts used to fix the phones were free from broken phones.

It's basically what electronics recyclers like Gazelle.com do, but on a smaller scale.

Re: Shanghai Activist Accuses Apple of Selling Used iPhones

Ok, I almost asked what the problem with used phones is, however, it's not right to sell used as new.

Re: Shanghai Activist Accuses Apple of Selling Used iPhones

i had a similar issue with my original xbox a few years back when the DVD drive died.

they claimed my 1 year (not even counting the multiple extensions they had at the time) warranty had expired despite i'd only had the thing for about 6 months.

in the end i was about to pay up to get the bloody thing fixed, and magically they found there was an "error" and replaced the fubar drive for free.

 
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Matthew Wilsonhttp://www.giantbomb.com/articles/jeff-gerstmann-heads-to-new-york-takes-questions/1100-4900/ He talks about the future games press and the games industry. It is worth your time even though it is a bit long, and stay for the QA. There are some good QA04/17/2014 - 5:28pm
IanCErm so they shouldn't sell edutainment at all? Why?04/17/2014 - 4:42pm
MaskedPixelanteNot that linkable, go onto Steam and there's stuff like Pajama Sam on the front-page, courtesy of Night Dive.04/17/2014 - 4:13pm
Andrew EisenOkay, again, please, please, PLEASE get in a habit of linking to whatever you're talking about.04/17/2014 - 4:05pm
MaskedPixelanteAnother round of Night Dive teasing and promising turns out to be stupid edutainment games. Thanks for wasting all our time, guys. See you never.04/17/2014 - 3:44pm
Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
MaskedPixelanteWell, I am officially done with Night Dive Studios. Unless they can bring something worthwhile back, I'm never buying another game from them.04/17/2014 - 2:29pm
PHX Corphttp://www.msnbc.com/ronan-farrow/watch/video-games-continue-to-break-the-mold-229561923638 Ronan Farrow Daily on Video games breaking the mold04/17/2014 - 2:13pm
NeenekoAh yes, because by building something nice they were just asking for people to come push them out. Consequences are protested all the time when other people are implementing them.04/17/2014 - 2:06pm
Matthew Wilsonok than they should not protest when the consequences of that choice occur.04/17/2014 - 1:06pm
NeenekoIf people want tall buildings, plenty of other cities with them. Part of freedom and markets is communities deciding what they do and do not want built in their collective space.04/17/2014 - 12:55pm
Sora-ChanI realize that they have ways getting around it, but one reason might be due to earthquakes.04/17/2014 - 4:42am
Matthew WilsonSF is a tech/ economic/ trade center it should be mostly tail building. this whole problem is because of the lack of tail buildings. How would having tail apartment buildings destroy SF? having tail buildings has not runed other cities around the US/world04/16/2014 - 10:51pm
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ZippyDSMleeYou still wind up pushing people out of the non high rise aeras but tis least damage you can do all things considered.04/16/2014 - 10:26pm
ZippyDSMleeANd by mindlessly building upward you make it like every place else hurting property prices,ect,ect. You'll have to slowly segment the region into aeras where you will never build upward then alow some aeras to build upward.04/16/2014 - 10:25pm
Matthew WilsonSF have to build upwards they have natural growth limits. they can not grow outwards. ps growing outwards is terable just look at Orlando or Austin for that.04/16/2014 - 4:15pm
ZippyDSMleeIf they built upward then it would becoem like every other place making it worthless, if they don't build upward they will price people out making it worthless, what they need to do is a mix of things not just one exstreme or another.04/16/2014 - 4:00pm
Matthew Wilsonyou know the problem in SF was not the free market going wrong right? it was government distortion. by not allowing tall buildings to be build they limited supply. that is not free market.04/16/2014 - 3:48pm
 

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