I don't think pirates can make N70 from scratch. What happens though is sometimes they would tend to sell a second hand unit as brand new, or replace the original parts with cheaper ones such as BL-5C with BL-4C.
Greenhills is notorious from selling contraband stuff from China so I guess that's where the reputation came from.
Greenhills is popular because most shop owners there don't pay taxes so they're able to sell the phones cheaper than the price in shops inside big time malls.
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