Date
22 September 2017
Shop owners in Mong Kok's Sin Tat Plaza expect die-hard fans to pay up to 30 percent more for the first batch of iPhone X supply. Photo: HKEJ
Shop owners in Mong Kok's Sin Tat Plaza expect die-hard fans to pay up to 30 percent more for the first batch of iPhone X supply. Photo: HKEJ

Black market prices for iPhone X expected to hit HK$14,000

Black market prices for the latest iPhone will be at least HK$3,000 higher than the listed price after its launch on Wednesday (Hong Kong time). 

The new iPhone X comes with new features such as facial recognition, wireless charging and augmented reality technology, hk01.com reports.

Shop owners in Sin Tat Plaza, a popular retail center in Mong Kok for iPhones, expect die-hard fans to pay up to 30 percent more for the first batch of iPhone X supply.

Lo King-yau of i-Generation Telecommunications said he has set aside HK$2 million to HK$3 million to speculate on the new iPhone.

Lo expects the iPhone X to deliver a profit margin of more than 30 percent, adding his supply could sell out within one or two months of release.

He said the price would probably be 30-40 percent higher than the original retail price, at HK$13,000 to HK$14,000 per unit.

About 20 regular customers have ordered the iPhone at his shop, Lo said. A few other customers have paid deposits on the new gadget.

Another retailer, surnamed Ng, said that each year, the price of a new iPhone increases due to speculation. “People like to speculate on mooncakes, so why not the new iPhones?” he said.

However, he told reporters he does not intend to keep any iPhones in stock as it can be risky and “prices change every 15 minutes”.

Speculators can make up to HK$300,000 in one month, “just like selling flowers on Valentine’s Day, but you can only earn that money once a year”.

A seller, surnamed Lam,  said the frenzy will last for about a month and it will be business as usual after that.

Almost 14 percent of the shops in Sin Tat Plaza are vacant, especially after the last speculation when iPhone 6s prices started dropping much quicker than expected, according to Apple Daily.

The monthly rent for a shop in Sin Tat Plaza is about HK$4,000.

The lower rent was meant to attract new tenants but it is still nearly impossible to bring Sin Tat back to its previous glory, according to another retailer.

“The new iPhone is too expensive for Hong Kong people,” he said. “It’s very unlikely that they are willing to pay more than the price of a computer for a phone.”

Unless the release time is different from mainland China, there is very little chance that speculators can make a lot of money out of the iPhone X, he said.

Another experienced shop owner said there are fewer people coming to ask about the new iPhone. He said most people already know about it from Apple even before the official launch.

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EL/BN/RA

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