Following our article some days ago about Apple being defrauded, we have gathered some more information on this subject
One of the first words you need to know is "stitching".
Stitching is the process by which an Apple Service Provider (ASP) technically defrauds Apple. This happens by a customer coming in for an out-of-warranty repair (as an example lets use a macbook top case). The customer's macbook top case is no longer working and they are happy to pay to get it fixed. Instead of the ASP ordering the part from apple as out-of-warranty and making around 15% gross profit margin, the ASP would find a serial number in their database of previous repairs (of an identical model) and order the part as a warranty part from a serial number they have found. This technically allows the ASP to pay nothing for the part, but then make 100% margin.
Apple only seemed to grasp the scale of this problem after a few years of the Genius Bar doing repairs where they had a SIGNIFICANTLY lower amount of warranty repairs. This made Apple engage in an audit of their American Service Providers where they caught some large scale fraud. This then in turn encouraged a GLOBAL service audit of every single ASP.
Rumour has it that the large UK ASP was closed down completely due to fraud and that some ASPs in the Far East may be closed.
Apple's GSX tool has existed for quite a while it is not a new thing, however major upgrades have been implemented recently including a feature called S.M.A.R.T ; this is a process by which part numbers and individual part serial numbers are tracked in an effort to stop stitching.
A new "Battery & Adapter Diagnostic" and "Clamshell Diagnostic" (for testing parts like airport and bluetooth that are within a display) are now mandatory as they spit out a code that has to used when a part is ordered. This is yet another way to make sure the right parts are being ordered and that they are matched to the Mac in question.
So these ASPs have been busy defrauding Apple - and as buyers of Apple products - we also end up paying for this with higher prices and now more stringent review of warrantee work.
