With Regards to Hong Kong, most of the Retail Apple Products are sold to visitors from China since it is much cheaper in Hong Kong compared to being taxed in China. And they are also being sold to countries around it since Hong Kong does not have sales tax and its price could even be cheaper then US depending on tax rate of the state.
There were a report from Credit Card Company years ago mentioning the Credit Card Transaction to Apple products would equate to buying an iPhone from every single Hong Kong resident. Clearly this is not possible. Most of those iPhone were resold to China and Russia.
Since Russia now has its own channel of getting iPhone, and less demand on iPhone from China, as well as the increase of Apple product sales point in China means less iPhone are being resold through Black Market. ( Only a few weeks ago someone laughed about Apple Black Market and compared to Ebay. Clearly they have absolutely no understanding of World Black Market Econ on iPhone )
I think Tim Cook understood this better then anyone, but obviously not willing to admit these in an investor conference.
And of cause all those point from Peter524, all of those i have already mentioned in many of my previous post. And Chinese Input sucks on iPhone. Apple not willing to open up its Keyboard API will do quite a bit of damage, and the size of screen, as well as the whole culture difference. I thought Apple would learn, adopt and evolve, those are words Tim Cook said in last conference where they said they are learning a lot. Clearly they are not learning fast enough. ( Or they did but haven't quite figure out the solution yet )