Chinese iPhone 14 scalpers seem to be struggling to recover their investment as they are forced to sell the phone for less than the MSRP price.
Whether we accept it or not, scalpers are an integral part of the free market, and there is little anyone can do about them. They are always prepared to get their hands on whatever inventory is available and sell it for ridiculous profits to fans with little patience and heavy pockets. However, this practice is not without its risks. Chinese media has stated that scalpers have been coerced to sell their brand-new iPhone 14 smartphones on the street for less than the official launch price just to cut their losses.
Photos of iPhone 14 scalpers sitting on the pavement with stacks of smartphones in front of them have gone viral in the country.
This turn of events happened as no one expected Apple to have a well-organized launch, with delivery times exceeding consumer expectations. Also, there was a below-average demand for phones in China, as people feared recession. Finally, there was the fact that the smartphone market has become even more competitive than before.
Hence, instead of selling their iPhone 14 phones for a profit of at least 5,000 or 6,000 yuan ($700 – $850) per unit, scalpers were forced to sell them for less than the official launch price, just to cut their losses. Some even say they were forced to sell them for 1,000 yuan ($140) less than the buying price.
Photos of desperate scalpers squatting at the gate of Tianhuan in the Chinese city of Guangzhou recently went viral on social media, attracting even more attention to their unfortunate situation. According to local sources, they are selling new iPhone 14 phones at prices 500 to 1,000 yuan lower than official vendors.