On the 10th anniversary of its launch has the iPhone lost its place in the hearts of Hong Kong traders?
Mong Kok merchants say the iconic phone does not have same attraction for mainland customers amid weaker yuan and slowing economy
With US tech giant Apple celebrating the 10th anniversary of its first-generation iPhone on Monday, some Hong Kong dealers are feeling a chill as the market darling is no longer a cash cow.
The launch of Apple’s first-generation iPhone in 2007 created a thriving “grey market” in Hong Kong. The same device was usually 10 per cent cheaper in the city than in mainland China thanks to the free port’s zero-duty treatment for most electronic products.
This allowed many local dealers to make a living by exploiting the price difference of iPhone products between the city and the mainland. The first few days of a product launch often saw the price doubling due to limited supply through official channels.
Ten years on, however, the “iPhone boom” seems to have lost its magic for dealers, as the “grey industry” is facing a slower economy, dwindling tourism, the depreciation of the Chinese yuan and tighter regulation.
Sin Tat Plaza, a popular mobile gadget hub in Mong Kok, has been a distribution centre for Apple products, where shop owners collect iPhone models from individual sellers and resell most of them to mainland buyers.