iPhone Duo Scalpers Suffer Major Losses Due to Demand Drop and Product Issues

Scalpers who bought Apple’s first foldable iPhone, the iPhone Duo, anticipating significant profits, are now facing considerable losses. Prices on the secondary market have dropped much faster than expected.

The iPhone Duo was released about a week ago after months of speculation. Many resellers, often referred to as scalpers in China, purchased units at high prices, hoping to capitalize on limited early supply. However, demand cooled quickly once the phones reached consumers.

Reports from local merchants indicate a sharp turnaround in interest. Issues with the phone’s hinge and incomplete software have dampened consumer enthusiasm. Resale prices have plummeted, turning what was expected to be a profitable venture into losses for nearly every unit sold. A merchant at Hangzhou’s Yigao Digital City noted that almost all scalpers dealing in the iPhone Duo are now losing money.

Industry insiders claim that some experienced scalpers have incurred losses amounting to tens or even hundreds of thousands of yuan (1 USD = 6.67 yuan) on their stockpiles. In this environment, those who manage to break even are considered fortunate.

Information about new devices spreads rapidly through social media and review channels, closing the information gaps that previously allowed resellers to profit from scarcity. Additionally, supply improved faster than many anticipated, further reducing opportunities for significant markups. Analysts and local dealers have pointed out that the high starting price limited the number of genuine buyers, resulting in a sharp decline in resale demand once the initial wave of curiosity subsided.

Scalpers who viewed the iPhone Duo as a guaranteed scarcity play have paid a visible price, highlighting that speculative hoarding in today’s transparent digital market carries greater risks than in the past.

(Via)

Source: Gizmochina