05 October, 2007

Apple has no plans to stop unofficial iPhone sales

An article in Emirates Today says that "Computer and music giant Apple has said it is powerless to prevent the unauthorised sale of its revolutionary iPhone in the UAE." The article continues, a spokesperson for Apple Europe says they are "aware of imported sales of the iPhone in countries other than the US but did not have plans to stop it."

It should be pointed out that any iPhone sold in the UAE is unofficial (gray market) and there is no service and support available. Since it has to be unlocked to be used as a phone here, the unlocking will void the warranty, Apple has confirmed.


nzm said...

Well, they won't stop the sales because they want the $$$s to keep coming in.

What they may do is keep re-blocking the phones with every new software update that they release for the iPhones.

Dubai Entrepreneur said...

I asked around last night around Khaleej Center (opposite Computer Plaza).. and the going price is AED 2800. I don't understand why anyone would pay that kind of money for a phone that has no warranty and is guaranteed not to work, should an update be performed.

Apparently people are buying them anyway.

BeetleBug said...

I don't think Apple is making ALL the money, especially here and especially with grey market items. Original company never makes cash off of grey market things.

Going price for an iPhone at Virgin was AED3800, that's at least twice the semi-reasonable price Apple's asking for the iPhone in US. Folks down here at Virgin are making a quick buck by selling these things without a warranty because they know there are plenty of rich idiots who'll buy them here. and if it doesn't work? who cares, they can go around saying "I got an iPhone" and people all around will be amazed and in awe.

nzm said...

beetlebug: the grey market sellers are paying the same wholesale price for the iPhone as the bonafide retailers, so Apple is still making their $$$s.

The grey market discounts to below the recommended retail price (which usually includes extra charges for warranties, service and support for the product), and the grey marketeers hope that enough people will risk buying the products without the safeguards so that they make good money. They depend on volume sales.

The grey market "discounting" is usually at the expense of service, support and warranties, as EMac points out in his post.

In other words, the buyer takes the risk that nothing will ever go wrong with the product, otherwise they'll be paying a lot of money for repairs that would otherwise be covered by warranties, if they had paid full retail.

Now, if you want to talk about the black market - that's where the original companies won't make their money because their products have been stolen for resale!

Lirun said...

almost seems like a mixed message now doesnt it.. IPR protection?!?! hmmm

perhaps apple are delighting in the reverse psychology strategy of "people seeking out what they arent allowed to have"..

Anonymous said...

the last iPhone software update came with the warning that after the download the phones that have been unblocked (the only network they're supposed to work on is the american at&t) may stop working.
Another thing - I wouldn't be surprised by the fact that you can buy chipped phones in Karama, but shouldn't an international retailer like Virgin stay away from any illegal stuff like that?

nzm said...

Gulf News article on Grey market iPhones

Anonymous said...

I dont understand how retards would want to buy an over priced phone then hack it so it can work with any service provider.After that it cant be updated cause the Apple Update will brick the phone.
Who would want to buy products from a company that deliberately bricks their phones.
One word "retards"

Free your phone
To be released in December
A much better alternative


B.D. said...

One BIG problem with Apple is that they refuse to support sales of their products in all but a few of the largest markets. It's a be damned attitude for the world majority who don't happen to live in the US, UK, Western Europe, Japan and the like. Hundreds of multinational companies manage to sell their ware with full support all over the world--Canon, Acer, Toshiba, Sony, Kodak...

It's enough to turn an Apple fan into an Apple debunker. Take iTunes, for example. There's no chance in hell Apple will ever make it available in the Middle East. Is it really enough that only North America, Western Europe and the Asian dragons are covered? Perhaps, from a profit perspective for Apple it is, but again, it reflects a "rest of the world be damned" attitude. This is shameful for a company that considers itself chic and in touch society. A company like Apple ought to be ahead of its rivals in this regard, not lagging way behind.

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