China closed two unauthorized Apple, Inc. stores in Kunming, China for operating without business licenses as part of probe into 300 electronics vendors in the city. Apple operates four Apple stores and has more than 900 authorized resellers in China, but copycat stores are springing up across China. China is one of 12 countries on the 'priority watch list' for intellectual property rights violations of the US Trade Representative.
Analysys International estimated that only 53% of the 1.07 million Apple iPads sold in China last quarter were through vendors sanctioned by Apple. Apple's combined revenue for China, Taiwan, and Hong Kong in the quarter ended June 25 rose six times to $3.8 billion from year ago. China's economy grew 9.5% in the second quarter 2011.
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