Apple has a pretty decent warranty system setup where a phone damaged under warranty will net you a new (refurbished) phone, no questions asked. Of course there are certain requirements needed to be met, but for simple hardware faults such as home/lock button malfunctioning, it's a relatively simple process. Now it seems that an electronics store in China has been somewhat abusing Apple's policy and have been running a scam in which they return fake phones back to Apple, and in return receive genuine components from which they will build and sell real iPhones. According to the report, five employees at the shop have since been arrested.
Ubergizmo , Chinese Scammers Return Fake Apple Components, Receives Genuine Parts And Made Their Own iPhones, Chinese Scammers Return Fake Apple Components, Receives Genuine Parts And Made Their Own iPhones
