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Lust for iPhones sees rise in fake Apple stores
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On a bustling street in China’s southern boomtown of Shenzhen, more than 30 stores carrying Apple Inc’s iconic logo are taking orders for the new iPhone.
Many of the stores look just like Apple’s signature outlets, right down to the sales staff in blue T-shirts and sample iPads and iWatches displayed on sleek wooden tables.
But the world’s second-largest smartphone vendor only has one official store in Shenzhen and five authorized dealers in the area. Most of the stores are unauthorized fakes — although they are selling genuine Apple products — and their numbers have mushroomed ahead of today’s release of the iPhone 6S and iPhone 6s Plus.
The rapid increase in copycat stores underscores the popularity of Apple in China, where it doubled its revenue in the third quarter from a year earlier to more than US$13 billion, and suggests the US tech giant is on course to shrug off weakening consumer spending in its second biggest market.
“There are many Apple fans in China,” said a clerk surnamed Zhao at one of the unauthorized dealers that opened just two weeks ago. “There are many silly people in China who are willing to pay extra money just to get a new iPhone ahead of everyone else.”
The latest model of the iPhone, featuring larger screens and longer battery life, will only be available on the launch date on China’s mainland to customers who have reserved online, and the company said demand has already outstripped supply.
Shenzhen’s unauthorized Apple stores are taking advantage, banking on quick-hit gains from re-selling devices bought via authorized sales channels for as much as double the official price to consumers unwilling to wait weeks for stock to arrive.
Several workers at the stores said they were buying iPhone models in the Chinese mainland and in markets such as the United States and Hong Kong, from where they would be smuggled across the border into the mainland.
Declined to comment
Apple declined to comment on the proliferation of unauthorized stores in China but said it recommended customers go to its website and buy products from one of the thousands of authorized dealers across the country.
Some analysts said the presence of fake Apple stores could be a good thing for the company as they promote brand awareness in a country that had just 22 Apple stores in the third quarter, with plans to raise that number to 40 by the middle of next year.
But the widespread unauthorized reselling of even genuine goods can make it harder for companies such as Apple to manage their brands and risks disrupting longer term plans.
The fake Apple store model is proving so lucrative it has even spawned a cottage industry servicing such businesses.
Just a stone’s throw from a street of copycat stores, tucked away in a giant mall, two shops offer the logos, uniforms, display shelves and shopping bags needed to make an unauthorized outlet feel like a genuine Apple store.
A recent raid by authorities on fake stores has, however, made some cautious. Some shops have blocked signs that read “authorized Apple seller” with promotional banners and covered logos with stickers.
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