Two engineering students in the US reportedly swindled Apple out of thousands of dollars. As per a report by The Oregonian, two students named Yangyang Zhou and Quan Jiang imported thousands of fake Apple iPhones and sent them to Apple for replacement. The two apparently received the counterfeit iPhone shipments from China and sent them back to Apple again after getting them replaced from Apple by stating that they wouldn't power on, exploiting the company’s replacement warranty policy. Zhou and Jiang’s contact in China sold the original iPhones off at a standard price and paid a cut of the profit to them.
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