China’s Apple Frenzy Triggers Wave of Smuggling

China’s upper market social strata loves showing off Apple devices and often flaunt these when going outside. The aspirations of middle strata Chinese is no different from their accomplished counterparts. They too wish to get their hands on to the device and as a result China is driving huge demand for Apple devices. However, the arbitrageurs are leveraging from the chances of earning by being a middle man in the trade proposition. For instance, they are buying iPad from Hong Kong in bulk in 3200 yuans and selling it in Chinese market where the iPad price is around 3600 yuans for the base model. Hongkong is a duty free port and as a result zero duty is levied on some electronic items. As a result, it is the arbitrageurs who are making merry in China.

Chinese traders who are conducting the under table practice are making millions. In fact the up market segment in China is so zapped with iPad and iPhone that they are willing to pay premium prices for the smuggled goods. These are actual Apple products and not the counterfeit ones that are making news these days.

Apple has already noticed the aspect and is all set to counter the threat by consulting local Hongkong authorities. The Apple frenzy China is all set to break sales records of Apple on the go.


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