By Chris Chang, posted Oct 28, 2010 at 1:45 PM, 3,600 views,

iPhone 4 Sold Out Within 10 Hours At China Online Apple Store

Apple’s new online store in China is not only the easiest way to shop online for Apple products, but also the best way for scalpers to get iPhone 4. So, the scalpers just won’t quit. First they caused the Beijing Apple store to close. Next they force Apple to triple the store’s security. Now China online Apple store stated that the iPhone 4 has been sold out, within 10 hours. You have to blame the scalpers for this.

On Tuesday, Apple suddenly launched the simplified Chinese version of its online Apple Store to satisfy the insatiable appetite of users on the Chinese mainland, which will allow them to buy a licensed iPhone 4 online. The Chinese customers are glad about this, since they can now directly purchase the iPhone 4 online, instead of having to first reserve the device and schedule a time to pick it up in the store. Customers will receive the iPhones in one or two weeks after placing an order. They can pay through different methods, such as online banking using 22 domestic banks, Paypal and credit card, and will not incur any freight charges for delivery. Sadly, the strict limit of one per customer still exist.

The price for the 16GB iPhone 4 is 4,999 yuan, while the 32GB costs 5,999 yuan. These price tags are almost 800 yuan higher than that of the same models sold in Hong Kong. Insiders explain that it is because Apple products sold on the Chinese mainland are taxed at 17 percent, while there is no consumption tax in HK, which is a free port. This explains why there are scalpers “smuggling” tens to hundreds of iPhone 4 from HK to Shenzhen. However, the scalpers on the Chinese mainland did not have time to care about that. They are busy looking for all sorts of channels to purchase a large quantity of iPhone 4 and resell to those customers who do not mind to pay more to get one right away.

In recent weeks, Apple retail stores have struggled to keep the iPhone 4 in stock, with scalpers quickly snatching them up and then selling the phones right outside the store. Firstly, let me tell you the situation at Hong Kong. The going price for the iPhone 4 is amazing at HK. For a 16GB model which costs HK$ 4,988, you could sell it to the black market, Sin Tak, for up to HK$ 7,000. The price may drop or increase anytime, depending on the demand at Chinese mainland. The locals were buying and selling large quantities of iPhone 4 since the July launch, and they often order tens to hundreds of units from HK online Apple Store. There’s no limit, every customer could order any amount. Unfortunately, HK online Apple Store has started to take actions recently, by canceling orders and stating the iPhone 4 is currently unavailable… Below is a chart showing the going-up price from July till now.

The going-up price at Hong Kong starts to drop dramatically when China online Apple Store provides iPhone 4 ordering. From the good price of HK$ 6,500, it drops to HK$ 5,600. When the news of iPhone 4 sold out at the online store, the going-up price increases back to HK$ 6,500 again. This whole thing is something like the stock market.

Next, the scalpers at China. Here’s what a scalper tells us,

“You will not have a chance to buy one. We have an auto-refresh system to place order, and we are watching it for 24 hours, can you do this?”

Yeah, these scalpers are really professional. It sounds ridiculous to hear that the iPhone 4 was sold out within 10 hours, and we are curious about one thing, when will it be available again? Well, we know Foxconn has been increasing production capacity for the iPhone 4. According to reports on September, Foxconn is producing 137,000 units of iPhone 4 everyday, with an average of 1.5 units per second. This is not enough. Apple and Foxconn have been working together to try their best to increase the production capacity to the highest level, and they are aiming to produce 170,000 units, with an average of 2 units every second.

As far as we know, there’s a high demand for iPhone 4 in China, especially Beijing and Shanghai. The people here do not mind about the price, they just wish to buy one and tell their friends that they have got an iPhone 4. So, consumers no longer need to buy an iPhone 4 through China Unicom, the only telecom operator offering Apple’s iPhone in China, they just need to learn how to act faster than those irritating scalpers and place an order on China online Apple Store before a scalper does.

Source: Appledaily (click here if the source link doesn’t work for you)