China Buys Back IPhones...Illegally?

China has come a long way economically in the past couple decades. Being the top manufacturer of Apple's newest IPhone, China ships the products to be sold in the United States. The American way of life is the carrot in front of the rising, Chinese middle-class, and they want more, even if that involves some smuggling. Through closed-container shipping and airline manipulation, the spread of blackmarket sales is imminent. 

“These trading networks have been around for a long time,” Professor Wei said. “They have recently become a lot more pervasive due to rising incomes in China — partially as a result of exports to the U.S.”

 The trail leads back to economical advantage, and China is ready to sink its teeth. If Apple sold the phones much more expensive there, they would probably make a larger profit than they will on Saturday, because the middle men are taking the cut. This surge in demand can be used for the U.S. benefit.

“It’s all about connections and channels,” said one seller at the Sleepless Mall, a big electronics market in Shanghai where wholesalers distribute phones to sellers in small stalls. “Once you have good relationships with customs and airline companies, you can ship whatever products you like. We smuggle it both by air and by boat.”

Writer, Nick Bilton, points out that the smugglers' actions have created some racial profiling, according to one Asian-American woman, but overall, it could be a good thing for Apple. Also, if the IPhone is desired so much because of its rarity, then maybe this is the first example of how America can get more of its products sold.