Fastcompany.com publishes great article on white-box phones! "China's Cell Phone Pirates Are Bringing Down Middle Eastern Governments"
From Fastcompany.com June 14, 2011, By Greg Lindsay
"In the latest installment of Butterfly Effect, we examine China's cheap knockoff cell phones. After being forced out of China and India, Chinese counterfeiters brought their product to the Middle East, where the sudden availability of information had unintended consequences for the region--and for China itself.
1. Enter The Shanzhai
In 2004, a Taiwanese electronics firm named MediaTek unveiled its latest product--a cell-phone-in-a-box aimed at manufacturers, equipped with everything they needed to make the guts of a working phone on one chipset. Write some software, add features, and snap a plastic case on the front and you've produced a new model. It was an immediate hit with China’s notorious counterfeiters, the shanzhai.
In 2004, MediaTek sold 3 million of its chips; six years later, its sales had soared to 500 million, more than a third of the worldwide market. Nearly half of those went to shanzhai. The sudden ability to design, manufacture, and ship millions of dirt-cheap handsets in total secrecy led to an explosion in Internet-enabled devices in China. “Five years ago, there were no counterfeit phones,” the sales manager at a Chinese component manufacturer told The New York Times in 2009. “You needed a design house. You needed software guys. You needed hardware design. But now, a company with five guys can do it.”
After conquering China, smuggled shanzhai phones made spectrum so valuable that India’s telcos allegedly bribed government ministers to get their hands on it for $40 billion less than it was worth, triggering an ongoing scandal that might bring down the government. Once India cracked down, however, the shanzhai were forced to look for new markets further afield, to the Middle East--where the glut of cheap phones would help enable the Arab Spring..."
Met with digital forensics investigators in India and Thailand during recent months. Both groups confirmed that their countries are flooded with these cheap phones and struggle to extract data when the come across them in cases - which happens frequently.