A new picture emerged at Apple stores in Hong Kong after iPhone 16 sales began – many Russian buyers came there with cash. Locals quickly realized this as Russian buyers wooed customers buying the new iPhone and offered to buy it at a higher price.
Russian customers offered to pay 12% more to customers walking out of Apple stores to buy phones from them. The main reason behind this is that the price of iPhones in Russia has increased drastically due to the invasion of Ukraine. Due to this, Russian citizens are preferring to go abroad and buy iPhones.
Apple has stopped selling its products and services in Russia from March 2022. Due to Russia’s military action against Ukraine, many Western countries, including the US, have banned technology exports to Russia. Therefore, many international products, including iPhones, are not available in Russia. Although these iPhones are marketed using the gray market (import without the company’s permission), their prices are 70% higher.
The iPhone 16, which was released internationally on September 20, is also available in Russia from some major chains – including MTS and M. Companies like Video- Eldorado have sourced these phones from various sources.
Besides, some individual traders are also taking advantage of this trend. Aleksenkov, a Russian buyer in Hong Kong, says he expects to make a profit of up to 25% on every phone bought at a 12% premium. The lack of sales tax in Hong Kong has made it a special attraction for traders.
Aleksenkov, 30, paid almost $2,000 ($250 more than the Hong Kong price) for the 1 terabyte Pro Max model. According to him, “this model is very popular in Russia, only the desert color is not popular.”
A profit can also be made by selling at a lower price than the big retailers. M. Video is charging 249,999 rubles ($2,710) for the 1 terabyte model in Russia, nearly 1.7 times the US retail price. On the Russian classifieds website Avito, prices for the model have reached 254,000 rubles ($2,742) in some places.
In Yangkong’s IFC Mall, where Apple’s first retail store opened in 2011, four Russian shoppers were also seen trying to buy phones from customers who were buying new iPhones.
Although three of these Russian buyers spoke very little English, this did not hinder their business. A buyer brought his son who spoke perfect English and they used him as an interpreter to communicate.
A local seller, who brought in two 1TB Pro Maxes for sale, complained that Russian buyers were paying him $2,027 for each phone, which was low. Russian buyers then closed the deal with a price of $2,040.
This wave of iPhone buyers in Hong Kong has become a hot topic, as people have realized the reason for the need for iPhones in Russia and the purpose of buying in Hong Kong.