A group who are known making and selling fake iPhones was arrested in China.

The men were members of a bigger gang which specializes on faking Apple products.

The components were bought in Guangdong, China. The fake iPhones were assembled in Shanghai in a small apartment that acts as the manufacturing facility.

The production cost of each assembled iPhone costs around $300. The fake iPhones are sold in the black market twice its price, which is still cheaper than Apple's iPhones.

What is even more odd is that among the forfeited samples of fake iPhones are "hiPhone 5", which are copied from the leaked images and rumors on the upcoming next generation of iPhone 5.

For more common consumers, spotting the difference between the real and the fake is quite difficult. It is found out that the fake iPhones even have genuine components of real iPhones.

The group was arrested after the raid of 28 fake Apple stores in China.

Real iPhone 5 will be introduced on Oct. 4.