Over Demand In China For Apple Products Spur Smuggling from Hong Kong [Popularity Of Apple Products In China Creates Smuggling Problem]

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Apparently China is going goo goo over Apple.  It can be evidenced in the recent issues with fake Apple stores (can you tell if you’re in a fake Apple store?).  Fake stores wouldn’t be profitable without a demand, right?  Now we’re hearing about smuggling going on.  Sellers in China are taking advantage of the cheap prices on Apple products in Hong Kong by having them smuggled to China and then offering them at a discount.  Clever.

Through smugglers, Chinese store owners can get Apple gadgets near Hong Kong prices, mark them up about half way to the actual price, bring in buyers looking for a discount, and still make a profit.

Apple products are becoming a status symbol among the rich in China which is driving the market for Apple gadgets above what retailers are able to supply.  Apple only has four official outlets which is one reason why fake stores are popping up and smuggling is becoming popular.  For sure, China is going crazy over Apple products.

The easy question to ask is why isn’t the supply meeting the demand?  Couldn’t apple expand their retail outlets knowing that their popularity will insure success?

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