Biz/Tech

Scalpers Struggle To Sell Smuggled iPhones In China

Sep 29, 2014 05:31 AM EDT | By Jane Galvez

Chinese scalpers are bringing in smuggled iPhones in China after Apple delayed the release of iPhone 6 and iPhone 6 Plus in the country. The smugglers struggle to sell the goods as Apple faces a new reality in the largest market in the world.

Once seen as a status symbol in China, iPhone has gained competition in recent years with brands like Xiaomi and Meizu technology offering phones of the same quality but half the price.

A managing director of the research firm IDC, Kitty Fok, said that it's not just because of the price that competition is high. "They have products that cater to the local market, big screen sizes, optimized connectivity for China and dual SIM cards," said Fok on local smartphone brands.

In recent days, the government has been cracking down the operations of iPhone smugglers. Officials reported on Sunday that they seized 453 units of bootleg Apple's latest gadget. Hundreds of iPhones are also retrived from three separate busts on Thursday in Hong Kong on a speedboat on its way to China.

Another confiscation of contraband happens in Shanghai airport from Tokyo where one Chinese and one Japanese tried to bring in illegal iPhone products in the mainland. IPhones have been confiscated from other passengers, according to a woman from the Shanghai customs agency.

Apple received criticism Friay from the English-language newspaper The Global Times. The editorial siad that the scuffle among Chinese nationals outside Apple stores in the U.S. makes the country "lose face." The writer highly discouraged patronizing the brand and believing the company's marketing ploy.

The release of iPhone 6 in the country was delayed, with no confirmation yet on when they'll release their latest gadget. Asides from local brands, the U.S. brand has been struggling to control the market against other tech giants Samsung and Lenovo. The South Korean brand released Galaxy Note 4 to have a head start start on the launch of Apple's flagship smartphones.

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