Is That A Real iPhone In Your Pocket?
Perhaps not. At least in Shanghai.
Is it real? No.
The South China Morning Post reports that Apple’s looming launch of the iPhone in China may be a disappointment. Reporters explored a consumer electronics street market in Shanghai and found thousands of iPhones for sale. Some of them were real. The real iPhones had been smuggled in, but were being out-sold by “high-end” counterfeit iPhones, many of which come installed with the same software as the original. The article reports speculation that there are already 2 million iPhones (real or otherwise) in use in China and that much of the market for the expensive gizmo has already been filled. And, since the announced prices for “official” iPhones are higher than real ones smuggled in, sales prospects for the official iPhone launch are dimming.
There are several lessons here. IPO enforcement is still too lax in China. Apple needs a more aggressive pricing policy. And trying to restrict iPhone usage to designated carriers is a futile strategy that has already backfired in China.
