Seeking Alpha [free reg wall]:
Western media reporting from the streets of China, paint an astounding picture of Chinese consumers thronging around outside Apple stores with signs desperately requesting iPhone 6 smartphones.
The research agency Counterpoint Research has estimated that as many as 5 million units may be smuggled into China before it is possible for consumers to purchase officially from Apple.
On the eve of the launch, Chinese authorities said Apple had won two necessary approvals, one to certify the phone for the Chinese market and another for wireless devices.
“But iPhone 6 still needs to obtain a key network access licence before it can enter the Chinese mainland market,” the Xinhua news agency said.
The delay has led to the emergence of a lucrative secondary market, especially in Hong Kong, where dealers are paying well over the retail price for new iPhones in the expectation of getting even more in turn from mainland Chinese buyers.
“If we are talking about the 128 gigabyte version we would buy it for as much as HK$18,000 ($2,322),” said Gary Yiu, the manager of the iGeneration phone reseller store.
Even if Chinese approval is close, the black market won’t wait for it. Fascinating.
Not much of a surprise. Considering that the Chinese people have been deprived of most commercial goods that we in the west take for granted for decades, the urge to be on the forefront of things like technological progress is strong.
Add to that the fact that in China the iPhone counts as an actual luxury item (where over here it’s a premium device) and the prestige owning an Apple device brings, it’s not hard to guess why the black market is thriving.
The last point to make would be the existence of a well-off upper middle class that has the money to purchase these gadgets and you can understand why it pays to be a black market dealer or scalper in China.
That lack of governmental approval is like a full-employment act for Chinese smugglers.
In China, the middle class is growing fast. And they all want status items like iPhones. Looking very good for Apple in the Chinese market.