Smuggled iPhones Not Hot In China - InformationWeek

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Smuggled iPhones Not Hot In China
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Thomas Claburn
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Thomas Claburn,
User Rank: Author
9/29/2014 | 4:15:58 PM
Slack demand for iPhones...
...tells me more about the unpredictable nature of the gray market than about Apple's prospects in China. Maybe Chinese consumers just know a bad deal when they see one.
mmil105
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mmil105,
User Rank: Apprentice
9/29/2014 | 2:47:17 PM
Re: Did anyone do some basic fact checking?
If your understanding of the iPhone is that it is "assembled" from parts that are "made" in the US, you should go back to Kindergarden to learn how to use Google!

Out of the hundreds of parts it contains, the only ones "made" in the US are the Gorilla Glass (but not the underlying LCD) and the processor.
chadbag
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chadbag,
User Rank: Apprentice
9/29/2014 | 2:45:52 PM
maybe because legit ones will be here soon
I am surprised there was much black market in China in the first place and it bodes "nothing" for Apple.   Most people who want one have heard the news that legit legal iPhone 6 family phones should be avilable very soon -- rumors have it October 10 -- so why risk a much higher price on an illegal smuggled one?

 

 
mmil105
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mmil105,
User Rank: Apprentice
9/29/2014 | 2:43:27 PM
Re: Did anyone do some basic fact checking?
Same case here? SERIOUSLY???

The iPhone has only 2 parts that are made in the US - the Gorilla Glass (but not the underlying LCD screen) and the processor.  

Do you seriously think that Apple ships boxes of US-made parts to China for assembly like your IKEA table?  Ever listen to a speech that Tim Cook made about this EXACT ISSUE?

FACT CHECKING PEOPLE!

It's called Google and it works.  Take 30 seconds to do a search before you post some ridiculous assumptions that have NO FACTUAL BASIS!
CunC132
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CunC132,
User Rank: Apprentice
9/29/2014 | 2:41:55 PM
Re: Did anyone do some basic fact checking?
If you don't understand the meaning of "made" vs "assembled", go back to elementary school. 
mmil105
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mmil105,
User Rank: Apprentice
9/29/2014 | 2:35:02 PM
Re: Did anyone do some basic fact checking?
I'm not sure if we're on the same planet here.

I was NOT talking about Toyota or rare minerals!

I was ONLY talking about how the article fuels the incorrect perception that the iPhone is a US-made product and lists this as the primary factor in low Chinese demand for the iPhone 6.

You say in broken English 'everyone knows there is [sic] [are] very little [sic] [few]electronics made in US.'   You clearly HAVE NO IDEA WHAT FACT CHECKING IS, COMPLETELY PROVING MY POINT

A survery of iPhone and iPad owners shows that 54 percent said their hardware was made partly in the United States and partly overseas, 18 percent said entirely overseas, 8 percent said entirely in the United States and 20 percent said they did not know.

 

 
CunC132
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CunC132,
User Rank: Apprentice
9/29/2014 | 2:32:56 PM
Re: Did anyone do some basic fact checking?
Last time I checked "Assemble" does not have the same meaning as "make". I bought a damn iKea table which individual parts supplied and started assembling process to end up with a functional table. Did I "make" that table? fck no. I assembled it. Same case here.
TerryB
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TerryB,
User Rank: Ninja
9/29/2014 | 2:22:20 PM
Re: Did anyone do some basic fact checking?
You are opening a can of worms worrying about Mfg origins. Under your logic, Toyota would be a US product because we have plenty of manufacturing facilities here making Toyota's for US buyers. But none of profits stay in US.

Apple is a US based company, that is what China is targeting. And I'm guessing they wrote iOS in California. But everyone knows there is very little electronics made in US anymore. China's intent is to prevent US companies from gaining sales in their country, regardless of their mfg structure. Surely you understand that?

Because China is source of so many rare minerals, good luck finding anything electronic which doesn't have something from China in it, even if everything else done here.
mmil105
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mmil105,
User Rank: Apprentice
9/29/2014 | 2:05:25 PM
Re: Did anyone do some basic fact checking?
Did you actually read the article?  

It clearly says 'US-made products' NOT made by a company 'that gives profit to Apple and thus US taxes.'  If you believe that the article says China didn't care where the phone was made, why would the article say 'US-made products'?

I always check facts before I write something.  Many people, both here and in China, incorrectly believe that the iPhone is a US-made product precisely because of articles like this.

You also seem to agree about my analysis about corruption - just do a Google search for 'iPhone 6 China corruption.'  However, corruption is not even mentioned in the article, yet it is listed as the predominant cause by many legitimate sources.  The fact the iPhone 6 is yet another Chinese-made smartphone (though it is designed by a non-Chinese company) is a secondary cause at best.

All I am saying is that I expected some better fact-checking from a Tech publication.  
mejiac
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mejiac,
User Rank: Ninja
9/29/2014 | 1:28:13 PM
Laws of Offer and Demand
Erick,

First, great article!,

Like any given product, if it's somethign that's trending and also part of a fashion statement, it'll have a black market behind it.

This is obvious in many fashion clothing articles, so smartphones aren't shielded from it.

Same goes for Laptops and tablets... if it's something that consumers want desperatly, then a profit can be made of it.

Like you mentioned, I was monitoring ebay sales out of curiority, and was amazed at the prices people were paying for the Iphone 6 (versus simply being patient and wait for supplies to re-stock).

But here's a question: do companies like Apple and Samsung tend to fight it? or simply accept it as a byproduct of the popularity and demand they're seing with there flagship products?

What does the community think?
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