iPhone 5 Release Date: Fake iPhones Made With Real Parts Found in China

Shanghai police have busted five people involved in a ring responsible for the production and distribution of fake iPhones on Thursday.

The iPhones in question, however, happen to be made of authentic iPhone parts.

The Shanghai Daily newspaper reported via Reuters that approximately 200 of the fake iPhones were uncovered at the bust.

The newspaper went on to say that the phone has been selling on unauthorized markets as well as on the Internet for about 4,000 yuan, or $625, slightly cheaper than the cost of a real iPhone in China.

9to5Mac suggests that various overseas Apple suppliers may have produced more parts than needed and sold the parts to third parties.

These parties would then produce iPhone hybrids, made of both authentic and inauthentic Apple parts and advertise the devices at double the cost of a completely replicated iPhone.

Production of the fake iPhone with authentic parts cost about 2,000 yuan or $312.

Shanghai Daily quoted the police as saying that the "FrankenPhones" operate just like actual iPhones but have a shorter battery life.

"It's really hard for customers to distinguish the fake ones from the genuine ones," one officer was quoted as saying.

Apple was unavailable for comment.

China is known for its extensive market of pirated goods, from electronics and computer software to designer handbags and accessories.

There are also reports that fake versions of the iPhone 5 have already begun popping up in Chinese markets and on the Internet, based on leaked images of the latest generation of iPhone, which has not yet been released.

One such replica is called the "hiPhone 5."

Commentators speculate that replicas of the actual chassis will be seen very soon after Apple's press conference on October 4 where the iPhone 5 is expected to be unveiled.

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