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Shenzhen: The Cradle of the iPhone, and Also its Huge Resale Market

Posted: 09/18/2014 6:22 pm

huaqiang bei iphone resell market greyThe heavily-anticipated iPhone 6, Apple’s newest smartphone, goes on sale today (September 19) in Hong Kong, but not Mainland China. That means demand for the smartphone has increased substantially, with smuggled versions already being listed for RMB 10,000 and up.

But you don’t have to pay that if you don’t need the latest and greatest Apple gadget. Shenzhen houses the massive Foxconn factories where Apple products are produced, but it’s also home to a thriving marketplace that sells these same phones, albeit several models behind.

The arrival of the iPhone 6 has dropped the price of the iPhone 4 down to RMB 1,500 at this market, and budget-conscious consumers are flocking to Open World Communication City in Shenzhen’s Huaqiang North District to purchase refurbished phones.

Older models like the iPhone 4 are popular among many Chinese because they are still Apple phones, but they are cheap.

READ: Taiwan TV: “Chinese Blue Collar Workers Can’t Afford Home Computers”

Huaqiang North District has become an extremely popular place to purchase cheap and fake (shanzhai) electronics after a resurgence in 2010. It has now become a ”barometer” of the electronics economy.

Open World Communication City is full of stalls packed with old iPhones in various conditions, some with cracked screens, and others held together by rubber bands. The mall is equally full of shops that offer repair services for cracked screens and destroyed casing for those who want a fixer-upper.

A seller named Lu sells refurbished iPhone 4′s in bulk at RMB 1,000 each (US $160). Another offers re-polished displays for the iPhone 5 at RMB 170 (US $28).

READ: Unreleased Hong Kong and US Versions of iPhone 6 Already on Sale in Beijing for US$4,500

However, many of the clients that frequent Open World Communication City aren’t individual consumers, but sellers hoping to resell a refurbished phone at a profit. As sellers sell to sellers, the origin of many of these old phones gets lost in the shuffle and dealers won’t disclose where they get their stock from.

US versions of iPhones going on resale in China may come from any number of sources, such as online reseller Gazelle, which revealed that half of its iPhone stock is resold to “emerging markets”.

huaqiang bei iphone resell market grey

As nebulous as the source from which old iPhones are gathered, the products and services offered at the mall and throughout Huaqiang North District are even more suspect. A photo BBS post depicts the method by which an iPhone 5 can be altered to resemble an iPhone 5s, all while emphasizing that it is taking place in Huaqiang North (seen above).

Even though Chinese conservative values emphasize the importance of relationships through business and blood, the social value of owning a status symbol like an iPhone—no matter the model—make it more valuable than diamonds.

Related:

Photos:  Qiyexun, Baidu Tieba

Haohao

Unreleased Hong Kong and US Versions of iPhone 6 Already on Sale in Beijing for US$4,500

Posted: 09/6/2014 1:58 pm

iPhone 6Can’t wait until Apple’s official announcement on September 9 to buy the new iPhone 6? There may be a way to get it now, but it will cost you.

Impatient consumers are apparently able to purchase the unreleased Apple product at select electronic stores in the Zhongguancun area of Beijing, reports Caixin.

Enterprising stores are reportedly selling “US versions” and “Hong Kong versions” of the newest iteration of the popular smart phone for a price of RMB 28,000 (around US $4,500).

zhongguancun

A popular electronic retail center in Zhongguancun, Beijing.

However, it’s tough to get a look at one of these devices, if the stores even have them. The shops are asking for money up front, and then say they will “set up an appointment” for you.

Industry experts are warning consumers to be wary of fraud, of course. The iPhone 6, once released, will cost a fraction of what these shops are charging.

Photo: zol, kemaiyixian

Haohao

More Than 200 Child Laborers Found in Dongguan Factory

Posted: 07/4/2014 9:04 am

Underage workers are seen working at a factory in Dongguan, wearing green uniforms given by the factory to distinguish them from adult workers.

More than 200 child laborers were found in an electronics factory in Dongguan, one of the country’s largest manufacturing hubs for electronics and consumer goods, trying to earn extra money to cover school expenses, Guangzhou Daily reported on July 3 after conducting an investigative report.

Most of the children are from relatively impoverished rural areas in Hunan Province and the Guangxi Zhuang Autonomous region. The children jumped at the opportunity to earn a monthly salary ranging from RMB 1,000 ($161) to RMB 2,000 ($392) at Ganggu Electronics Factory in Dongkeng Town.

The children were led by a man named Chan, and  were introduced to the factory through a person named Ah Min. Both of the men got a cut of the profits from the underage workers’ salary, the report said.

On June 22, a girl under the age of 15 named Xiao Jing was one of the more than 30 students who signed a contract with the factory, promising to work at least 280 hours per month. After giving the factory copies of their fake ID cards (saying they were over 16) and household registration, the youngsters were immediately put to work the next day.

The legal working age in China is 16.

Child laborers eating in the factory’s cafeteria.

A few days after starting work, Xiao Jing and 12 other youngsters were fired from the factory without any reason or payment. Most of the children are between 13 and 15 years-old.

Ah Min (pseudonym) said the three parties that include the teacher Chan, the agency and the factory all know the children are too young to work. Child laborers in the factory are given green work uniforms to distinguish them from adult workers, who normally wear blue overalls, according to one child laborer.

A child laborer lies on a bed in the factory’s employee dormitory.

However, the factory management denied they were aware these workers were children. They said they had a hard time verifying the work documents sent by the intermediary agency.

“They can tell these children are not 16 years-old just by one glance. The copies of their fake IDs and household registrations are just for show. No one will look into them. This is the unwritten rule,” Ah Min said.

In fact, sending child labor to well-off southern cities is less of a surprise for local residents in Pingnan County in Guangxi, where some of the children are from. Students in junior high often volunteer to work as child laborers in Guangdong to earn extra cash for school and help out with family expenses.

“Most of the people living in our county are very poor. There is no other way out. Many students work during summer vacations,” said Ah Wei (a pseudonym), uncle to one of the child laborers. “Every summer vacation, several hundred students go out to work. Most of them are younger than 16 years old,” he added.

The factory has paid the salaries for the 13 dismissed students, and promised to send the rest of the youngsters back to Hunan and Guangxi Province.

Although the payments were already given, the majority of the students wanted to stay and continue to work. Officials from the local human resources bureau and executives from the factory are working to persuade the students to go back home.

Most child labor stories involve forced labor, coercion and violence. But as Guangdong’s exports and economic growth slows, poverty-stricken children looking for ready cash fit right into the plans of factories that are currently trying anything to keep operational costs down.

Strictly speaking, hiring voluntary child laborers could be the easiest and cheapest solution.

Photos: Guangdong Daily 

Haohao

Dongguan workers on strike at Samsung supply factory

Posted: 03/31/2014 7:00 am

Two years ago, South Korean electronics giant, Samsung Electronics Co. was accused of exploiting child labour in several of its Chinese supply factories. Samsung is once again embroiled in labour scandal and unrest as workers from one of its Dongguan supply factories has gone on strike, demanding higher salaries and better social insurance.

Net Ease Finance reported on March 30 that a large-scale worker strike took place on March 29 in Samkwang Science & Technology Co. The company has more than 1,000 employees and manufactures mobile phones and DVD players for Samsung.

One of the workers on strike told the news portal that the Dongguan company deducts RMB 80 (or 8%) from a seasoned worker’s monthly RMB 1,000 salary for social insurance, which the worker claimed to be a large share, the report said.

The report did not specify how many workers participated in the strike and there was no comment from the Dongguan company or Samsung.

In 2013, Samkwang was accused by US-based China Labor Watch of owing payments to workers, discrimination against men, pregnant women, ethnic minorities and applicants over 39 years old, Business Week reported.

Samsung has more than 200 manufacturing suppliers in China. Back in 2012, China Labor Watch accused the Korean company of hiring child labor at six of its plants and two of its suppliers in China.

Here is a photo of the strike scene from Net Ease:

Home page and content page images from Net Ease 

Haohao
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