A few weeks ago, Apple implemented a policy limiting iPhone sales to two per customer and sale by credit card only. Seemed likely that this was to stem unofficial market sales abroad, and this Wired piece by Aventurina King confirms it. The iPhone, known as the "Ai Feng" ("Crazy Love") is growing quite a market. The market is trim selling the handsets at about $474 for unlocked models, imported in copious amounts via HK mules, which must feel like coming home for the asia-born devices. After all this, does China need an official market when the country so clearly loves all things illegal better than the legit deal? [Wired]
China's Red Hot iPhone Black Market
7:37 PM on Tue Nov 20 2007
By Brian Lam
9,466 views
24 comments













Comments
release stuff in the country its made first and there wont be a black market there for the devices; this goes for any company
This is exactly how I'm going to get my iPhone (if I decide on getting one)- why risking bricking my phone when I can have someone jailbreak and unlock it for me?
BTW- if you don't already know-"USSD functions" just means that there's support for those service codes that start witn * or # (I forget which).
I'll take them both, (in the picture) that combination is pure Heaven Baby!
I'm not sure that "Crazy Love" wasn't referring to her. Cause she looks lovely...but mad crazy too.
The underlying article is pretty cool: touching on, for example, on the necessary unlocking/app. issues - such as Chinese character text messaging.
Awesome.
"....imported in copious amounts via HK mules."
Like a drug mule? Cuz thats gonna hurt coming out something fierce.
@smackswell: Imported? No, that's not how it works. It's made on the mainland, so the factories produce extra and sell that locally to resellers who unlock, jailbreak, and then sell it to the general public (quite a lot of it to tourists- I call it "gadget tourism").
@jamar0303: Good point. Wired article didn't mention that, but as a son of HK, I think that's scenario isn't out of the question. Although armani sunglasses are a lot easier to miss than iPhones.
Why "black market"?
As far as I know it's not illegal to buy or sell the iPhone in many countries. It's just Apple that want's to sew up some revenue sharing deals with local Telcos before releasing to other countries.
In fact a lot of countries have laws that allow imports for most items for personal use that aren't available locally or are high priced (parallel import laws). Australia and Singapore have simular laws around parallel imports.
Is the iPhone technically subject to export controls due to its encryption standards?
@Wired Magazine: "[...] the largest, bbs.iphone.com, has 170,000 members."
Who says Apple doesn't support unlocking the iPhone? Why, they're hosting the largest cracking support forum off their own domain!
mmm... asian chix.
I am in Shenzhen, China now and I can confirm for a fact that there are several shops in the Hua Qiang Bei (Huge Computer and Technology shopping district) that have the authentic (Sealed) iphones! There are also several shops that have horrible Knock-off versions that SUCK like nobody's business.
I have my US iphone and I have it unlocked and I am using it on the China Mobile Network (Prepaid). It is a bit shabby and requires some weird quirks from time to time to keep it on the China Mobile Network but it works well....mostly.
why does it have to be "black" market geez its 2007 people
@Bandit
From my understanding is that as long as you not on the restricted list (rogue states, axis of evil etc...) any company is free to export as long as it obtains an export license. Since Apple is selling outside of the US it's must have a license to export so a non-issue.
BTW: Is Iraq still apart of the Axis of Evil? maybe an update in needed..... perhaps Iran, North Korea and France :-)
You would think China would scoff at the iPhone for being so privative compared to their tech.
Or am I thinking of Japan?
Here in Kuwait, the iPhone isn't officially out yet. But you can buy it in stores for 399 Kuwaiti Dinars (about $1436.00 USD), which is insane. It comes already cracked, and able to use one of the local carriers (like Wataniyah or Zain MTC).
And I've heard that Kuwaiti Customs is limiting iPhones to 10 per person per entry, as they are seeing large volumes coming in. Crazy.
@Ion_Predator: Yep, Japan (also Korea). China's certainly ahead of the US, but not quite to Japan's level. In China, at least, the iPhone's the new hot thing. It's expensive, but the hard work's done for you.
Well, parallel imports are very common in China, and people importphones that aren't available via official dealers in China and sell them there all the time. Usually it's just "grey market" and not all that illegal. In case of the iPhone though, it seems to be, for whatever reason, illegal to import and sell.
No offense Brian, but are you related to that chick? She looks a lot like you.
@Escamotage:
Did you HAVE to drag him out of the closet like that!? Damn Man, that is so tasteless!
Was there a phone somewhere in that picture? I didn't notice it.
It's not illegal at all, despite what the manufacturer may say.
@Ypoknons: O RLY? I've never got that impression while living in Shanghai- it seems that every cellphone shop that can get their hands on one is selling it(and a few Apple resellers too).
I am starying in Shenzhen and using China Mobil as my carrier, since i bought iphone in hongkong, i have some trouble using it here. my iphone can receive call, can sent and receive sms, but strange, it won`t call any of my contacts. can anybody help me out to sove this problem? Thanks.
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