Even though the iPhone 4 is for sale in China through legitimate channels, there's a short enough supply that smuggling the devices in from Hong Kong is still big business. Especially, it seems, for these two ladies on a subway.

There are dozens of iPhone 4s being sorted here, distributed among backpacks for easier, less obvious transportation. Part of the reason that smuggling thrives is that there are only four Apple stores in the entire country, and those are overrun with scalpers.

What's impressive is how out in the open the smuggling in this video is, especially given that each one of those phones goes for about $747 on the black market. You'd think at those rates they could at least afford a cab. [MIC Gadget]