Crippled iPhone Launches in China

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Is the hardware for the WiFi not included or is it just software disabled? If it's the latter there it should be an easy fix but if the chip and antenna is missing...
 
When I was in China back in March, I thought it was interesting that they had admittedly fake iPhones in the markets that could take 2 sim cards so you could have two phone numbers in one phone. I was unclear as to whether there was a fake iTunes and app store to go along with it.
 
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