jenniferlin

The Apple Company has just debuted its brand new phone models, iPhone6 and iPhone6 plus 5 days ago. The popularity of such cool phones also attracted lots of trend followers in China. They are willing to buy those phones no matter how expensive they are. Dealers in China took the advantage of purchasing IPhones abroad, for example in the United States, where they could buy the phones ahead of the releasing time in Hong Kong and brought them back with them on the plane. And when they arrived home, they could then resell the phones in grey market at a much higher price in Mainland China because there was no other place that sold Iphone6.In another words, they had a competitive advantage for the moment. However, the supplies flood from Hong Kong to mainland market lowered the expectation of growth in price; and what is worse, the price of a resold IPhone6 went down.

Some Hong Kong people came to Mainland China with two or three iPhone6s and hawked them on the street. Since they had a lower cost of stocking these phones, they were more likely to offer a lower price to their clients. These individual resellers from Hong Kong provided a more competitive price than most “shops” in Mainland China offered, and thus they resold them more quickly than the resellers from local did. And making and losing the money all depends on the time these days; according to an interview to a reseller, he said, “the price is dropping way too fast, and while the phones were on the plane, each phone is falling 2000 RMB.” This is definitely a big lost for the vendors who are counting on earning money from reselling these phones in grey market in China.

Picture:

http://www.gottabemobile.com/2014/09/24/iphone-6-vs-galaxy-note-3-bend-test-reveals-clear-winner/