China's fake Apple Stores alive and well, look to profit on iPhone 6s launch
Thanks to lax copyright enforcement policies, growing demand for all things Apple and a lack of official retail channels, China's fake Apple Stores are experiencing a resurgence on the back of iPhone 6s preorders.
Fake Apple store in China, circa 2011.
In electronics manufacturing mecca Shenzhen, a major cog in Foxconn's iPhone and iPad production machine, a multitude of counterfeit Apple stores are popping up to take advantage of Friday's iPhone 6s release, reports Reuters. According to publication estimates, more than 30 storefronts bear Apple's iconic logo, with some unauthorized outlets kitting out personnel with Apple Store-style blue t-shirts and lanyard name tags.
As they have in the past, these counterfeit stores are taking advantage of China's seemingly insatiable iPhone demand. Just hours after iPhone 6s preorders went live last week, Apple's allotment for the Chinese market sold out, pushing buyers loathe to wait an extra two to three weeks toward unauthorized stores that buy stock from official resellers and flip them for a hefty profit.
With iPhone viewed as a status symbol in China, many consumers are willing to pay more than double retail prices to get their hands on one the day it comes out. For some buyers the high costs are apparently worth the added cachet that comes with nabbing a copy on day one. Consumers in other markets are also keen to get their hands on Apple's latest smartphone, but Chinese customers are especially zealous.
The benefits are more concrete for resellers, who risk minimal retail overhead and an upfront investment by smuggling iPhones in from Hong Kong, the U.S. and other far-flung markets. If successful, however, they stand to haul in huge returns.
Apple has for years dealt with counterfeit stores, an issue that gained media attention in 2011. While Chinese officials ultimately ordered a handful of operators to shut down, the unauthorized resale industry was never completely wiped out. Now with iPhone 6s, resellers are back in business.
Part of the problem stems from an inadequate official retail presence in the region. Apple only had 22 stores serving all of China as of June. By comparison, there are 53 Apple Stores in California alone. The disparity is stands in contrast to China's market potential, which is widely viewed as vital to Apple's growth and sales sustainability. The company has plans to expand its retail footprint to 40 stores by 2016, however, the most recent being a second Hangzhou location in April.
Fake Apple store in China, circa 2011.
In electronics manufacturing mecca Shenzhen, a major cog in Foxconn's iPhone and iPad production machine, a multitude of counterfeit Apple stores are popping up to take advantage of Friday's iPhone 6s release, reports Reuters. According to publication estimates, more than 30 storefronts bear Apple's iconic logo, with some unauthorized outlets kitting out personnel with Apple Store-style blue t-shirts and lanyard name tags.
As they have in the past, these counterfeit stores are taking advantage of China's seemingly insatiable iPhone demand. Just hours after iPhone 6s preorders went live last week, Apple's allotment for the Chinese market sold out, pushing buyers loathe to wait an extra two to three weeks toward unauthorized stores that buy stock from official resellers and flip them for a hefty profit.
With iPhone viewed as a status symbol in China, many consumers are willing to pay more than double retail prices to get their hands on one the day it comes out. For some buyers the high costs are apparently worth the added cachet that comes with nabbing a copy on day one. Consumers in other markets are also keen to get their hands on Apple's latest smartphone, but Chinese customers are especially zealous.
The benefits are more concrete for resellers, who risk minimal retail overhead and an upfront investment by smuggling iPhones in from Hong Kong, the U.S. and other far-flung markets. If successful, however, they stand to haul in huge returns.
Apple has for years dealt with counterfeit stores, an issue that gained media attention in 2011. While Chinese officials ultimately ordered a handful of operators to shut down, the unauthorized resale industry was never completely wiped out. Now with iPhone 6s, resellers are back in business.
Part of the problem stems from an inadequate official retail presence in the region. Apple only had 22 stores serving all of China as of June. By comparison, there are 53 Apple Stores in California alone. The disparity is stands in contrast to China's market potential, which is widely viewed as vital to Apple's growth and sales sustainability. The company has plans to expand its retail footprint to 40 stores by 2016, however, the most recent being a second Hangzhou location in April.
Comments
What kind of self-respecting totalitarian regime can’t crack down on this? Almost as though they want it to happen.
Like at work, you're as funny as your title. Have you ever wondered why every employee rolls on the floor laughing at the CEO's knock-knock joke, yet the mailroom clerk, who used to tour with Chris Rock, gets crickets from the director-level jerkoffs? You can't dear be caught not laughing by the not-funny CEO.
Tim Cook would dare never bring these stores up at his next meeting with Xi.
They're too busy trying to keep their circus tent of an economy inflated while cracking down on Taylor Swift merchandise that might bring up memories of Tiananmen Square.
Almost as though they want it to happen.
Ya think?
Is using counterfeit money in a fake store illegal?
Hmmm.
One thing I can say; this means long lines for the U.S. in-store purchases this weekend.
What a joke! That right there is straight up fraud on a massive scale, and it's obviously ok with the govt. What a crooked place. What a crooked country. What a bunch of crooks.
[IMG]http://forums.appleinsider.com/content/type/61/id/63274/width/200/height/400[/IMG]
[IMG]http://forums.appleinsider.com/content/type/61/id/63275/width/200/height/400[/IMG]
Look at the bright side. First, if someone is stupid enough to not be able to tell the difference, it's their problem. Second, it says that there is still a lot of demand for Apple retail in China, giving that segment room to grow there. Third, I'd rather this 'problem' were Apple's than its competitors' (who can only dream about something like this).
“Welcome to the People’s Republic of China, where everything’s made up and the currency doesn’t matter; that’s right, the currency is...” *quick glance over at a PRC Party official narrowing his eyes* “...perfectly fine and growing, just like our glorious economy!”
I've always wondered, are they selling knock off hardware at these stores?
From the second link the the Apple Insider article:
http://www.reuters.com/article/2015/09/23/us-apple-china-idUSKCN0RN2EF20150923
Read the link:
"Most of the stores in the roughly 1 km shopping corridor are unauthorized "fakes" - although they are selling genuine Apple products..."
Ha, great one!
Oh nice so Apple is making money off these guys?
I thought they were selling MiPhones.
I've always wondered, are they selling knock off hardware at these stores?
I'd say almost certainly. A guy at my work has a couple KO Apple Watches.
this makes me think of all those times apple was in the media because the people putting the phones together could not afford them. someone can afford them, it appears millions and millions of chinese people can afford them.