Apple Cracks Down on iPhone 4 Scalping in China

[Michael Essany]

Like tickets to a major sporting event or the latest video game system release, a hot ticket in town always brings out the scalpers. In China, however, the scalpers are out in full force with one primary target in sight - prospective iPhone 4 buyers. As a result, Apple has been put on the spot to address this growing problem. And they have.

Released just days ago, the iPhone 4 has already seen - as anticipated - massive product shortages within the world's most populous nation and largest mobile community. In order to limit scalping and help consumers obtain their new Apple smartphone without being fleeced by scalpers, Apple is putting in place a new reservation program at the company's retail outlets in China (new Shanghai flagship store pictured above).

Here's how it works: As you might imagine, walk-in iPhone 4 sales are no longer permissible at Apple Stores in China. Instead, customers must now reserve their smartphone online prior to visiting the store to pick up the goods. The program also includes purchases of the iPhone 3GS, which has similarly been barred from walk-in sales. Still, even with attempts to cut back on iPhone scalping in that part of the world, it could take upwards of one month for Apple to meet the consistently overwhelming demand for the iPhone 4 within China.

Apple (China site w/ Google translation)

[AnthonyGiola]

Wow just wow

[Zokunei]

What's scalping?

EDIT: Oh, when you buy a bunch of them and sell them for higher prices.

[exNavy]

How is it the iphone is allowed to be sold in unlimited quantities in the largest grey market nation on the planet, but in the US it wasn't? Why weren't these people in charge of the store thinking at all?

[BennyPR]

[N. American] (crime) sell illegally, as on the black market

[iYeow]

This is expected in Asian Countries if no proper control is implemented to make fast money & the lack of discipline in society.

[z3r01]

Hhhhaaaaaaaiiiii! Takai nedan de watashi kara 4 iPhone o ima sugu kōnyū

[A_SWELLGUY]

supply and demand... If you give everyone what they want there would be no need for it and we would be over saturated. There are some people out there that would pay any amount to have the latest greatest "toy" and to be able to say they have it before anyone else...This website is a prime example. People here boast about what they have and what they can do and how you (we) dont or cant do anything to be on that level. We have pay sites to help you unlock or jailbreak your phone when there are free methods here. I sell iPhones on ebay for outrageous prices just because people want them so bad. I dont even have to start the bidding high it just gets to that point by itself. Supply and demand..

[whereswaldo]

They should be grateful that they can preorder, you can't do that in Canada, we went months with the iPhone 4 being almost mythical

[wastedrocco]

I only got mine in Canada because I knew someone at the head office of the largest Rogers dealer in Canada... Or else I would still be waiting for one. I kept it for myself, I probably could have sold it for a pretty penny and then bought 2 in 6 months when stock is available.

However, I genuinely wanted it for myself- and because the company does business with me- I don't want to jeopardize my business relationship with them.

None the less, I think they should stick with what they were doing before... The minute you over saturate the market, the need dies down and they become cheaper because everyone has one...

Kind of like ford and chev- the use vehicles are worthless even a year after- you take a bath on it- this may end up happening with the i4.

[Rob2G]

Holy crap, Thats one of a million reasons Im glad I dont live in China.

[hitman10]

Interesting... My dad travels a lot he went to china recently and I asked him to get me an iPhone 4 since I only got the 3GS. The price was $400USD for the 32gb, white or black, it's amazing what you can get, he brought me back a blackberry for $50USD retailing in Canada for like $450-500 in most rogers. You can get anything their and cheap as hell. The best advice my dad gave me was. If your going to china , don't bring anything in you luggage, I got like 10 billabong shirts, nice shoes, a&f stuff. Pretty cool.

[Dayvidpriddy]

Why is it Apple's business as to what someone does with their phone that THEY bought? If people want to sell it to make a profit there is no crime done. Look at all the iPhone 4's that were on eBay for over 100K and people were actually buying them at that price. Apple just doesn't want others profiting but fair is fair...if you sell it for 500 or 600 that is your choice, once the transaction is done you have no claims on it. Reserving a phone (like the pre-orders in the US) is not going to stop people from making a profit.

Talk about being control freaks!

[ecd5000]

there should be nothing illegal about scalping iphones, come on its called ebay.

[baRRy boRRis]

I don't think there is anything wrong with touting. If you are retarded enough to actually buy something from them then you should be removed from the gene pool.

On eBay people were paying £550 for a used 16GB iPhone 3GS when a brand new one was £440. Fools.

[unklbyl]

As said b4, supply and demand. I got a PM offering $1000.00 US for my JB unlocked iphone4 32GIG. Guess what? I still have it. I wanted it, and i got it. Can you justify a grand for a dang phone that will probly be old garbage in two years?

[EskimoRuler]

Interesting

[hayzen]

One of the main reasons for the new policy is because one scalper walked out of the store after buying 30 iPhone 4s. So to reduce the scalpers from buying in bulk, the new policy is that one customer can only buy an iPhone 4 each day.

That means a scalper could buy up to 365 iPhone 4s within a year depending on stock. Multiply that by the amount of scalpers in China (including the scalper's participating friends, family members, and co-workers.) and I think the customers are still getting screwed over from this new policy.

I think 2 per customer is still the best policy so far.

[Zeal]

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