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Apple closes Beijing store temporarily to thwart iPhone 4 resellers

Despite the iPhone's official release in China, a grey market continues to thrive. So much so that shoppers are buying units from Apple for private resale in such large quantity, that Apple had to temporarily down the Beijing Apple Store.

According to M.I.C Gadget, the trouble started when Apple lifted the 2-per-customer restriction at the Beijing store. People were buying up to 30 iPhones at a time, which they would privately resell for a profit. In fact, many were selling right outside the store. Things got out of hand as the crowd quickly swelled and scuffles broke out between the mass-quantity buyers and individuals looking for a single phone. Security eventually shut the store down.

Within hours, the store re-opened with a new policy. Customers must show ID when making a purchase. They may purchase only 1 iPhone at a time, which will be unboxed and activated in the store by an employee before the customer is allowed to leave. This policy has now been extended to all four of China's Apple Stores.

Considering the high demand and extreme shortage of iPhones in China, it's understandable how a grey market develops. This was an unfortunate circumstance. Good on Apple Store security and management for addressing it in a timely fashion.

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Despite the iPhone's official release in China, a grey market continues to thrive. So much so that shoppers are buying units from Apple for...
 

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glad

Mao must be spinning in his grave!!!

September 30 2010 at 10:08 PM Report abuse rate up rate down Reply
Ethos

That is just crazy regardless of anything. Seriously it is a piece of tech that you're still paying for. And stupidly enough they could go into the shop and buy some? Where is the logical thinking here. Or better yet buy it online. Cheaper and don't worry about someone punching your face in :s

Who ever got into a fight deserved to due to their own incompetence of not realizing all the other avenues of legit ways to purchase the Apple or any product for that example.

September 30 2010 at 7:58 PM Report abuse rate up rate down Reply
1 reply to Ethos's comment
Mr Lizard

Stock is tight in China and only the stores have them.

That's why people buying up 30 phones to resell for a profit went to the stores.

October 01 2010 at 2:33 AM Report abuse rate up rate down Reply
robogobo

ok, "good on" is officially tired.

September 30 2010 at 7:31 PM Report abuse rate up rate down Reply
Shorty

Everyone wants to know who at Apple didnt see this coming. Worst case: It was done on purpose for folks who have already profited. Never underestimate the fix - and the fix is always in, in China.

September 30 2010 at 6:30 PM Report abuse rate up rate down Reply
Mike

WTF apple? How does CHINA get to sell phones without activation/contract?

September 30 2010 at 6:15 PM Report abuse rate up rate down Reply
1 reply to Mike's comment
Mr Lizard

Where do you live? In most European countries you can buy an unlocked phone from Apple.

October 01 2010 at 2:29 AM Report abuse rate up rate down Reply
joeybeast

The irony that it's made in China almost escaped me.

September 30 2010 at 5:29 PM Report abuse rate up rate down Reply
boom

I don't see how Apple didn't see this beforehand. Being Chinese myself, I know how "capitalistic" the culture is. Anywhere you can nail a profit, they are there.

And scuffles, nothing new. They fight all the time for even small things line place in lines. Nothing wrong with that though, they are just passionate about their time.

September 30 2010 at 5:23 PM Report abuse rate up rate down Reply
2 replies to boom's comment
airmanchairman

I can't, just can't believe my eyes that after decades of experimentation with Communism, human society can still be so self-serving, so philistine and so individualistic.

There is no hope for humanity, absolutely none.

September 30 2010 at 8:10 PM Report abuse rate up rate down Reply
Jenny

You can't believe human nature? Only the Chinese government is Communist. I'm not surprised at all that the people themselves are capitalist. I wonder what would happen if the government relaxed their rules a bit and allowed more people to live in a capitalistic way?

September 30 2010 at 10:00 PM Report abuse rate up rate down Reply
rackley

It was a stupid idea to increase the limit to 30 in the first place.
It's pretty obvious that people would buy large quantities and then grey market them. I would as well. I see no reason to reduce the limit to ONE though. Two worked well for the US market so it should at least be the same policy in Beijing.

September 30 2010 at 5:22 PM Report abuse rate up rate down Reply
2 replies to rackley's comment
Jason Litka

Yup, I've got one (in the US). Factory unlocked iPhone 4 32GB.

October 01 2010 at 8:16 AM Report abuse rate up rate down Reply
lassi

or they could just sell in bulk to those willing to buy in bulk.

usually that is not a problem for any company selling a product they make money with.

and then bring a fresh shipment to screw the aftermarket sellers aftermarket gouging profits.

however - were they unlocked or not? I suppose not since the new rules demand that you activate it in store. which means the in-store price is probably subsidised, which makes picking 20 of them up and jailbreaking a very bad deal for the guy paying for the subs(the operator or apple, depending on their contractual arrangement).

October 01 2010 at 8:32 AM Report abuse rate up rate down Reply
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