This is true.
How can you spot a bad board before buying? You can't really. You can look out for the most common issue with non-reliable boards and that's the AV and SPDIF ports being the wrong way round but that's just one of the bad boards.
There are in the region of 6 bad boards going around Shenzhen right now. They are not reliable and they are not compatible with the wealth of firmware available online for the hugely supported (by the community) MX box.
What can you do? You can ask for a picture of the board before buying - if it doesn't look like this

Then simply don't buy it.
Do not buy it, not if you want the firmware that's freely available online to work - not if you want support - not if you want reliable XBMC - and not if you want community support.
If you want all this, buy from the source of MX only - the source is a huge factory in China that deal with 4 major resellers - nobody on alibaba is "really" a factory. They just put shells on the products they buy in.
I'm so saddened to say that even the big 4 I speak of have been cracked with trying to cut costs in recent weeks and I can't honestly put my hand on my heart and promise you that all 4 of the previously recommended companies are trustworthy to send original boards. I've seen too many things the past 72 hours come from places I would normally have trusted so I went back to the source. The original MX manufacturer.
Now I will only recommend one, the original MX manufacturer - to buy from directly.
There's a reason we all love Amlogic devices instead of rockchip. Personally for me, it was always about quality and reliability.
Quality because the MX does exactly what you want it to and reliability because there's only one board and ANY MX firmware worked on it - to me thats what made MX so special.
Now it's different boards, same case - like the rockchip mess.
The same will happen to S802 and S805 now. It's such a shame.
I will only deal with one manufacturer now and order from one person only and I recommend you do too.
No other source can be trusted, only the source.
PM me if you want contact details - I will post the company name only with Finless' permission.
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