Gray Markets of China and Hong Kong Loaded with Smuggled Apple Products

As shared by Spokeswoman of Apple, Jill Tan, the area of sales for iPad would be widened to an array of countries like the Netherlands, New Zealand, Singapore, Hong Kong, Austria, Belgium, Ireland, Luxembourg, and Mexico. However, the date for the launch of Apple’s iPad has not yet been decided for the world’s fastest growing country, China.

She further exclaimed that the smuggled iPads and the functioning of the gray markets in China are extremely difficult to keep a tab on.

The reports confirm that the markets of China and Hong Kong are stacked with smuggled iPads and the dealers are making a fortune by selling the products in the gray markets.

As per the figures, the sales for iPhone in the gray markets in China crossed 400,000 in the first half of the year, as against 500,000 which were sold by the authorized carrier, China Unicom (Hong Kong) Ltd.

Reports claim that Apple products in the gray markets are more popular against the US, since the smuggled products are unlocked and can be used by any phone carrier's service.

Another reason for the popularity of these products is the attractive pricing. As per the reports, the smugglers dodge taxes of 50,000 Yuan or more in order to sell the products at cheaper rates.

As shared by Jianwei Yang, a gray market dealer, who sells iPhones at booth 2008C in Hailong Electric Mall in Beijing, ”Since the iPhone 4 first appeared a month ago, I have sold more than 20 locked models and 30 unlocked ones. Over 90% of buyers are from government authorities or companies that buy them in groups".