Fake IPads Flood Market as Scammers Target Top Technology Gift

Olga Kharif, On Tuesday November 1, 2011, 12:01 am EDT

"You can only copy to a certain degree," ... "It's not necessarily about hardware but the software, and it's very difficult to copy that,".

The success of Apple Inc. (AAPL)'s iPad isn't just drawing more competition to the tablet market. It's attracting thousands of counterfeit and knockoff products.

On a single day in July, almost 18,000 fakes and clones resembling the iPad and Android devices were available for sale on 23 e-commerce sites, according to MarkMonitor Inc., a San Francisco-based firm that helps companies protect their brands.


The tablets can be illegal -- for instance, if they have a bogus Apple logo -- and often they don't work well and have no warranty protection, said Fred Felman, chief marketing officer of MarkMonitor. The copycat products and suspected counterfeits found in MarkMonitor's survey were offered by more than 5,000 sellers, many of them located in China.

Counterfeiters are increasingly focusing on mobile technology after years of copying pharmaceuticals, handbags, software and other products. Tablets are obvious targets because they're the most-desired technology gifts this holiday season -- beating out laptops, televisions, e-readers and video-game consoles, according to the Consumer Electronics Association.

To avoid getting cheated, shoppers should stick with retail sites they know, Felman said. A dramatically low price is another red flag, he said. The clone tablets in MarkMonitor's survey were typically 69 percent less than the retail price of the genuine item.

SOURCE: Yahoo (http://finance.yahoo.com/news/Fake-IPads-Flood-Market-as-bloomberg-3096691335.html?x=0).

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