Is the iPhone 6 a flop? Smugglers forced to slash prices by more than HALF after supply outweighs demand in China


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The iPhone 6 has so underwhelmed consumers that even smugglers who illegally shipped them to China are having to slash their prices.

Criminal gangs who queued up for days in the US and Hong Kong to get the Apple devices have been forced to charge less than half because of falling demand.

Users in China now see the iPhone as just another smartphone and not the special product that it once was.

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The iPhone 6 has so underwhelmed consumers that even smugglers who illegally shipped them to China are having to slash their prices. Pictured is a smuggled sets of Apple iPhone 6 are displayed after being found hidden in a tea leaf box at the customs in Shenzhen, near the Hong Kong border, Guangdong province

The iPhone 6 has so underwhelmed consumers that even smugglers who illegally shipped them to China are having to slash their prices. Pictured is a smuggled sets of Apple iPhone 6 are displayed after being found hidden in a tea leaf box at the customs in Shenzhen, near the Hong Kong border, Guangdong province

The New York Times reported that smugglers were shipping devices to China because they do not go on sale there for a few weeks and they are already out elsewhere.

In the past that has meant they can sell them for far higher prices than normal because consumers wanted to be the first to get them.

But at one electronics market in Beijing, one retailer was selling the iPhone 6 and the 6 Plus for between the equivalent of $1,060 (£650) and $1,436 (£885).

Just after the phones came out they were selling on the Chinese black market for $1,960 (£1,200) and $2,450 (£1,500) each, a decline of 54 per cent and 58 per cent respectively.

Criminal gangs who queued up for days in the US and Hong Kong to get the Apple devices have been forced to charge less than half because of falling demand. One iPhone seller in Beijing's northwestern tech hub Zhongguancun said: 'Stocks of the iPhone 6 are way too high right now'

Criminal gangs who queued up for days in the US and Hong Kong to get the Apple devices have been forced to charge less than half because of falling demand. One iPhone seller in Beijing's northwestern tech hub Zhongguancun said: 'Stocks of the iPhone 6 are way too high right now'

If the trend continues it could mean the end of smugglers queuing up at Apple stores at the launch of the newest iPhone, making unlikely companions to the tech-savvy 20-somethings who form the bulk of the line. Pictured are queues of people waiting to get their hands on the iPhone 6 and 6 Plus earlier this month

If the trend continues it could mean the end of smugglers queuing up at Apple stores at the launch of the newest iPhone, making unlikely companions to the tech-savvy 20-somethings who form the bulk of the line. Pictured are queues of people waiting to get their hands on the iPhone 6 and 6 Plus earlier this month

Legitimate retailers are currently selling iPhone 6 at a starting price of $649 (£539) and 6 Plus for $499 (£619) 

One iPhone seller in Beijing's northwestern tech hub Zhongguancun said: 'Stocks of the iPhone 6 are way too high right now'.

WHY IS THERE A CHINESE BLACK MARKET FOR IPHONES? 

China isn't selling the latest iPhones, despite the country being Apple's biggest market. 

Soon after Apple's announcement of the iPhone 6 and 6 Plus, China's big three telecom providers removed their online pre-order forms for the new phones.

The move followed an announcement by Apple that the phone's introduction China had to be delayed. Apple is yet to respond to a request by MailOnline about why the announcement was made.

Some experts have speculated that Apple isn't selling in China due to iPhone 6 leaks, while others suggest it is due to supply chain issues.

The 21st Century Business Herald, a Shanghai-based business publication, claims the problem is that Apple hasn't yet received a 'network access' license from Chinese regulators. This wasn't an issue for Apple previously and why this is the case now has yet to be revealed. 

The main route to China for smuggled iPhones is from Hong Kong - gangs persuade consumers to buy them using their official ID cards, only one of their agents to collects the device from the Apple store.

When prices were good smugglers could expect to make around $163 (£100) per device but now one iPhone seller said that his losses will be 'big'.

Another factor which has put of smugglers is a crackdown by police in China who have been raiding boats carrying iPhones before they land at ports.

If the trend continues it could mean the end of smugglers queuing up at Apple stores at the launch of the newest iPhone, making unlikely companions to the tech-savvy 20-somethings who form the bulk of the line.

The reports of declining demand in China contradicts with Apple's own figures which said that it had 10 million pre-orders worldwide for the iPhone 6.

In reviews it was dubbed the 'most exquisite smartphone ever' but since then consumers have reported a number of issues including how the phone bends easily and stays out of shape.

There have also been problems with iOS 8, the latest operating system, with some users complaining that it stopped them being able to make calls.

Apple has released a fix for their devices.

The company declined to comment on the smuggling. 

Legitimate retailers are currently selling iPhone 6 at a starting price of $649 (£539) and 6 Plus for $499 (£619). Just after the phones came out they were selling on the black market for $1,960 (£1,200) and $2,450 (£1,500). They are now selling on the black market for the equivalent of $1,060 (£650) and $1,436 (£885)

Legitimate retailers are currently selling iPhone 6 at a starting price of $649 (£539) and 6 Plus for $499 (£619). Just after the phones came out they were selling on the black market for $1,960 (£1,200) and $2,450 (£1,500). They are now selling on the black market for the equivalent of $1,060 (£650) and $1,436 (£885)

 



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