Fake Apple stores get shutdown orders in China

Chinese authorities shut two unauthorised Apple Inc stores in Kunming for operating without business licences, a newspaper run by the southwestern city’s government reported.

Investigators also examined three other stores that used Apple’s logo without the company’s permission, though they were found to have operating permits, according to the Dushi Shibao newspaper report posted today on the Kunming government’s website. The findings were part of a probe into more than 300 electronics vendors in the city, according to the report.

The move comes about a week after the “BirdAbroad” blog began posting photographs of a fake Apple store complete with an acrylic staircase and crew of blue-shirted sales staff, showing the extent some dealers will go to profit from booming demand for iPhones and iPads. The company’s network of more than 900 retail outlets has failed to keep up with demand, forcing customers to buy from vendors not sanctioned by Apple.

“In areas outside of the biggest cities, it’s difficult to find Apple products, and there is strong demand,” said Jim Tang, a technology analyst at Shenyin & Wanguo Securities Co in Shanghai. “For a big country like China, Apple’s sales network doesn’t go far enough, and the company needs to expand.” The city government hasn’t received any requests from Apple on the matter, and the company declined to comment, according to the report.

Yu Cheng, who owns three stores selling authentic Apple products in Kunming without the company’s permission, isn’t violating any Chinese laws and is actually “doing Apple a favour,” Deng Hai, a lawyer with the Sichuan Law Offices representing the businessman said, adding, “Yu’s stores haven’t been ordered to shut.”