As iPhone 6 units are smuggled in 'Twinkie boxes,' Chinese government says regulatory approval comin
The Chinese government reportedly signaled on Tuesday that Apple's iPhone 6 and iPhone 6 Plus will soon be granted regulatory approval, potentially putting to a stop the massive -- and unique -- smuggling efforts currently underway to satisfy demand.
Appearing on CNBC Tuesday morning, reporter Eunice Yoon said that just hours ago, the Chinese government said the review of the license for the iPhone 6 would be "completed soon." That, she said, has helped to temporarily drive down prices for Apple's new handset on the black market, with locals believing that sales through official channels could begin.
Currently, the iPhone 6 is selling for about $1,900, while the iPhone 6 Plus is said to be going for around $3,250 U.S. The most popular colors are gold and space grey, which according to Yoon are commanding up to a $500 premium in unauthorized sales.
And while Chinese customs are cracking down on illegal imports of the iPhone 6, smugglers have been getting creative to earn a profit.
To this end, Yoon said the black market has turned to Chinese equivalent of Twinkies, with smugglers removing the localized yellow sponge cakes from their packaging and stacking iPhone 6 units inside.
Other ways of smuggling the iPhone 6 are said to include placing them in coffee tins and toothpaste boxes.
Profiteers have been flooding Apple Stores in America, buying unlocked, unsubsidized iPhone 6 and iPhone 6 Plus units to smuggle back to China at huge markup. Strangely, last year Apple was able to obtain the proper certifications for the iPhone 5s and iPhone 5c on launch day, but this year the company has hit a snag with Chinese regulators.
A report last week claimed Apple had received one of two Chinese regulatory certifications to start sales in the country, but a firm date has yet to be announced. Apple has been mum on the issue, but it's been claimed that the company missed its internal launch target for debuting the iPhone 6 in China.
Appearing on CNBC Tuesday morning, reporter Eunice Yoon said that just hours ago, the Chinese government said the review of the license for the iPhone 6 would be "completed soon." That, she said, has helped to temporarily drive down prices for Apple's new handset on the black market, with locals believing that sales through official channels could begin.
Currently, the iPhone 6 is selling for about $1,900, while the iPhone 6 Plus is said to be going for around $3,250 U.S. The most popular colors are gold and space grey, which according to Yoon are commanding up to a $500 premium in unauthorized sales.
And while Chinese customs are cracking down on illegal imports of the iPhone 6, smugglers have been getting creative to earn a profit.
To this end, Yoon said the black market has turned to Chinese equivalent of Twinkies, with smugglers removing the localized yellow sponge cakes from their packaging and stacking iPhone 6 units inside.
Other ways of smuggling the iPhone 6 are said to include placing them in coffee tins and toothpaste boxes.
Profiteers have been flooding Apple Stores in America, buying unlocked, unsubsidized iPhone 6 and iPhone 6 Plus units to smuggle back to China at huge markup. Strangely, last year Apple was able to obtain the proper certifications for the iPhone 5s and iPhone 5c on launch day, but this year the company has hit a snag with Chinese regulators.
A report last week claimed Apple had received one of two Chinese regulatory certifications to start sales in the country, but a firm date has yet to be announced. Apple has been mum on the issue, but it's been claimed that the company missed its internal launch target for debuting the iPhone 6 in China.
Comments
LMAO! @ People on here claiming Chinese iPhone smugglers were doing something that was legal. Oops! It was clear as day that this wasn't legal. They have an approval process for a reason.
These are obviously just the new twinkie bumper models...
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It all depends on what part you're talking about. The line sitters aren't doing anything illegal, and it's not illegal to sell your properly after you own it. The illegally comes into play when either exporting from the US and/or importing to China. How could there be a debate about that?
It all depends on what part you're talking about. The line sitters aren't doing anything illegal, and it's not illegal to sell your properly after you own it. The illegally comes into play when either exporting from the US and/or importing to China. How could there be a debate about that?
No its not necessarily legal to line up either. It depends on how you do it. NYC has laws that you have to obey if you want to line up for stuff. People were claiming that shipping these units to china was in fact legal when it is not. Why would you need to smuggle it back to China if what you're doing is legal. China has an approval process. Secondly, these helping someone commit a crime which is in the US illegal in and of itself.
Having laws to obey (like not sleeping) does not mean being in a line is illegal. So what is illegal about these people being in a line?
China requires all electronic be taxed (I think around 5%)
If you smuggle iPhone, you are breaking the tax code.
And before you say they paid the tax, I would remind you in order to pay the tax, the electronic has to be registered in the government database.
P.S. I can't wait they approval tomorrow, so I can buy some cheap iPhone here. (Last year, no one buy 5C in China, the smugglers have cut the price to $400. )
Having laws to obey (like not sleeping) does not mean being in a line is illegal. So what is illegal about these people being in a line?
I never said being in line was illegal. LOL! where did you get that from? I don't recall anyone saying being in line was wrong. In fact most of the discussion has been almost exclusively focused on whether or not whether or not reselling iPhones to people in china at cut throat prices was legal.
You wrote, "No its not necessarily legal to line up either."
I'm saying it's perfectly legal to be in the line. What is illegal is other things you might do in the line (sleep, deal drugs, commit murder, defecate on the sidewalk, etc.). I assume your comment stems from that video of the line sitters going around and the comments black and grey market.
Then you also wrote, "Secondly, these helping someone commit a crime which is in the US illegal in and of itself," which implies their lines sitting is also then illegal but I can't imagine how you could prove that without heavily surveillance to catch the setup or payout as well as a specific knowledge of smuggling the devices out of the country. You might as well then claim Apple is culpable for selling iPhones to these line sitters.
Gruber correctly notes that what the line sitters are not the black market.
You wrote, "No its not necessarily legal to line up either."
I'm saying it's perfectly legal to be in the line. What is illegal is other things you might do in the line (sleep, deal drugs, commit murder, delicate on the sidewalk, etc.). I assume your comment stems from that video of the line sitters going around and the comments black and grey market.
Then you also wrote, "Secondly, these helping someone commit a crime which is in the US illegal in and of itself," which implies their lines sitting is also then illegal but I can't imagine how you could prove that without heavily surveillance to catch the setup or payout as well as a specific knowledge of smuggling the devices out of the country.
Grruber correctly notes that what the line sitters are not the black market.
Read the very next sentence where I say "It depends on HOW you do it".
It stems from the fact that I live in NYC and I saw people in line blocking the surrounding businesses from operating normally after repeatedly being asked to move by the business owners and the police. I live here and see it and see the mess and the lines throughout the month of October.
Yes people helping with committing crimes are not doing anything wrong because they didn't do the crime. US law doesn't hold that view. Chinese authorities have already verified that the devices didn't come from China and they came in from the US and other countries and have started cracking down as a result. We all know full well what these people are doing. When it's just one person doing it. No one cares but the scale of what has been happening over the recent years is the problem.
The black market can't happen at the scale it is without these people. They are very much a part of the black market. It is illegal to resell the iPhone in a country that hasn't approved the device to be for sale in that country. He's wrong in particular as it relates to china.
So you hold Apple and their employees responsible for selling black market goods?
So you hold Apple and their employees responsible for selling black market goods?
OFFS!
Where did you get that from what was said?
Really?!
So you are making a big deal about some people smuggling phones into China. Why are you so concerned that the Chinese government gets what they want? Is it illegal according to the Chinese government? Yes.
But so is being a practicing Christian.
Its also illegal to be Gay in China.
Its also illegal to speak out against the government in China.
All those offenses can lead to decades in jail and even execution.
So i ask again; is it really a big deal reselling an iphone in China? Really?
Try bringing goods into the US and reselling them without reporting it to the gov.
Cigarettes is a good example.
You will go to jail if you are caught.
The illegal importation and reselling of any goods is illegal in most, if not all, countries of the world.
Illegal in China.
Its also illegal in China to practice Christianity.
Why are you so concerned about a Goverment that will literally execute a person for saying one word against the government?
In the 1800's it was 'illegal' to help smuggle slaves out of the South to save their lives. Do you think what those kind hearted people did was wrong? There is a difference between illegal and what is right.
So smuggling iPhones into China is the same as smuggling slaves out of the south. Great argument.
He wrote, "Yes people helping with committing crimes are not doing anything wrong because they didn't do the crime. US law doesn't hold that view."
So if US law doesn't hold the view that helping others to commit a crime is legal then, by his logic, Apple is culpable for supporting these black market iPhones in China. Apple certainly knows more about where these phones are going and how they are being used more than any of these poor line sitters.
Bottom line: It's not illegal for Apple to sell these phones and it's not illegal for people to sit for days in line to buy these phones just resell them.
So you are on the side of a government (China) that executes people for being gay?
You are worrying about China not getting their taxes so there politicians and crownies can continue to enrich themself?
We aren't talking about the human rights
You won't go to jail. Unless you are a repeat offender.
Again who gives a flying sheeet if someone breaks the law of a country that can literally execute anyone at a whim?
You swear at a goverment official in public you can get executed in China
Whether you agree with China or not is not in question.
Their economy can be hurt by smuggling. Not just the public sector but the private sector, too. Even in the US with the iPhone you have people like me waiting up to 8 weeks for a product because much of the supply is being diverted away from its intended market. This affects Apple, too.