Published in Mobiles

China no longer crazy about smuggled iPhones

by on29 September 2014



We want to be a launch market

Although it was a launch market for the iPhone 5S and 5C, China was left out of the big iPhone 6 launch. Since it did not get a lot of love from Apple in the past, China spawned a vast underground market for iPhones in recent years.

However, According to the New York Times, demand for smuggled iPhones has cooled down. Prices have tumbled and an entry level iPhone 6 now sells for just over $1,000, but scalpers were selling it for $1,960 shortly after it was released.

The New York Times talked to a few individuals involved in the smuggling chain and learned that stocks of the iPhone 6 are too high. Demand is softer than expected and Apple now has to deal with a lot more competitors.

“Today, the iPhone is simply one option among many, as local companies like Xiaomi and Meizu Technology rival Apple in terms of coolness while charging less than half the price,” the paper concluded.

Scalpers are now expected to lose cash on their iPhone 6 investments rather than make it.

There are an estimated 50 million iPhone users in China. Apple is having an increasingly difficult time competing in mainland China, as competition has intensified in recent years. A number of vendors are selling cheaper devices designed to cater to the needs of the Chinese market, with larger screens, dual SIM support and connectivity tweaks for mainland carriers.

The new iPhones should launch in China any day now and October 1 has been tossed around as a possible launch date.

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