For a country notorious for cheap but fake imitations, it is not surprising to hear that some Chinese are taking advantage of Apple's warranty to create real iPhone 4S units with fake ones.

The scheme involves buying a fake iPhone 4S, which definitely are plentiful in China, and then replacing it with a genuine Apple back cover and battery. Then the unit, which contains fake iPhone 4S BAND parts, is bought to an Apple centre for replacement.

This gives the petty Chinese criminals a profit of at least 1,000 Chinese yuan since they sell the new iPhone 4S at current prices.

Apple, however, has discovered the scam and sent engineers from Singapore to investigate the matter. The engineers confirmed that the BAND parts of the returned units were fakes.

At least five people have been arrested for taking part in the scam.

Despite the existence of such schemes, Apple Chief Executive Tim Cook - aware of the big Chinese markets for its smartphones and tablets - apologised to the Chinese due to the growing number of complaints about Apple's different warranty standards for Chinese and Western buyers.

Now, Apple would also have to deal with another headache after an article in a Chinese newpaper claimed that the California-based company is allegedly providing pornographic content to China via 200 Web sites and apps.

Apple is known for its strict policies against the inclusion of pornographic apps in its App Stores. Thus, even if it approved an app for Playboy magazine, all the playmates get to keep their clothes in the online edition viewed using smartphones.

RELATED STORIES