Inside Shenzen's Grey-Market iPhone Mall

jfruh writes Despite being largely manufactured in China, iPhones are still too expensive for most Chinese to afford — new ones, anyway. That's why thousands come to a bustling marketplace in Shenzen that specializes in older grey-market iPhones. Many of them are damaged phones that have been refurbished by enterprising merchants. From the story: "Reselling iPhones can be a lucrative business. The Shenzen mall, called Open World Communication City, is based in the Huaqiangbei district, which attracts buyers from around the world who come here to shop for cheap devices and components. But some of the business is shady. Earlier this year, a person who claimed to have worked at the mall posted pictures online showing how dealers can refurbish an iPhone 5 to make it look like an 5s."

Comments

Repair

[pr0nbot]

It was like this in the Tepito market in Mexico City in the 80s... as well as all the refurbished and stolen goods, if you had a broken walkman or whatever, there'd be some guy who could fix it for you. I miss the culture of repair.

Re:Repair

[Sockatume]

The price of smartphones seem to have revived that culture to an extent here in the UK; phone repair shops started springing up like crazy by 2009 and now even my local cobbler has staff trained to do simple phone jobs. Most of the standalone places do PC and console repair, and customisations too. Admittedly, my handset came back from the cobbler scratched on the inside of the glass and with bits of leather and boot polish stuck in the corners, but you can't argue with a £15 fix over a £150 Apple Store replacement.

And yet, I have to ask around a bunch to find a guy that does professional-grade tool-sharpening. Go figure.

Re:Repair

[c6gunner]

I miss the culture of repair.

You miss overpaying for goods?

A repair culture exists any time it's significantly cheaper to fix something than to replace it outright. A couple hundred years ago there was a repair culture about everything including socks, because a new pair of socks was a luxury and continually patching old ones was way more economical. We stopped repairing our socks when they became cheap enough to throw away. Do you really want to go back to a time when you had to keep repairing your socks because you couldn't afford new ones?

I don't miss that. Not at all. I much prefer having the choice to either tinker with my gadgets when I have the time, or just buy new ones when I don't.

Re:Repair

[AmiMoJo]

There is a balance. Some products are cheap but also fairly easy to repair, which is clearly better than simply discarding them for landfill or even recycling. Non-replaceable batteries are the worst since that's an extremely easy fix that most manufacturers are happy to support. Glued together cases instead of screws or even clips to save a few pennies. It's needless and wouldn't make products significantly more expensive, if at all.

Re:Repair

[tlhIngan]

I don't like having to re-buy goods due to planned obsolesce. Take TVs, for example. I have a Sears TV in storage from the '80s. The manual has circuit schematics, where to get replacements for the channel buttons, how to replace switches, what pots are used where. It was made so someone with basic soldering skills could at least maintain it. A new LED TV just gets chucked and you buy a new one, even though the problem could be a membrane contact that costs a penny.

First off, your Sears TV is suffering from "Survivor Bias" - it lasted that long for you Who knows how many thousands are sitting in landfills because they're broken? So no, you can't say "things were made better in the past because my XXX works today". Geez, I could say they made computers back then better because I have a 486 that still works today (with original hard drive).

And let's not forget cost - that 486 PC cost nearly $6000 new with a 14" monitor. You can get a new PC these days for $300. Sure I can repair that 486, but that's because it cost a lot when I got it. These days that $300 PC isn't as repairable because if it costs more than $50 to fix and it's older than 2 years, it may be time to just buy a new one. (The old one's residual value would be $20 when it was working, practically speaking).

And your LED TV? Given you can get 40" TVs for practically $200, and to replace that penny contact will involve probably an hour of time with the guy charging $75/hr, well, people would just buy new. Because what if it fails again a couple of months down the road? You going to spend another $75 repairing it (total cost $150). And again?

For a lot of stuff, it just isn't worth it - diagnosing the problem and fixing it costs way too much money. Unless you do it yourself for fun (i.e., your time is free) in which case it's a great way to get good equipment for practically free.

In other words, for a good chunk of things, repair is a hobby. it's cheaper when your time is worthless.

The economy is getting shittier in general. In the past, we could afford to replace things when something small broke. I had a collegue who bought a new car every 2-3 years, once when the relay controlling the heated seat failed. These days, it is commonplace to see people nursing their old Saturns and Honda Civics to keep them on the roads. That is why headlight polishing kits are so common. In the past, vehicles got replaced before the glass or Lexan dulled (or used sealed beam headlights.)

For cars, replacing it 2-3 years usually corresponds with a lease arrangement. And cars are quite repairable - that failed relay can usually be repaired for a few hundred bucks in labor. Or a few hours if you do it yourself.

And there have always been people who nurse their aging cars - to the point where we even call them "beaters". If you're willing to put up with a lot, the modern computer-controlled car can fail in many ways and still keep going while the old mechanicals with carbs and distributors would just be dead. You should get a OBD scanner on those to see the fault code, and you'll find practically everything has failed (if the check engine light is off, it means it's burned out having been on for the past 10 years).

The other reason is economy - those 2-3 year lease/fleet returns are cheap, so you can get a fairly decent car when someone else has eaten the depreciation.

Then there's the group of real fanatics who spend $10,000 to fix their car worth $2000 tops (and less as scrap).

One reason why companies have chosen to go with products that cannot be repaired is simple -- it gets rid of the used market. In the past, if someone had a broken lawn mower, someone else could give it a carb rebuild and get it perfectly functional. A lot of goods, once broken, can't be recycled, much less salvaged for anything whatsoever, which means no real secondhand market.

This is going to backfire. Will a company make mor

Part of the defamed "e-waste" culture

[retroworks]

Have been to these markets in Shenzhen and Foshan, and to similar marketplaces in Cairo and Lima and Jakarta. In Chinese there is a word "shenzhai" I think which means to "hack" or copy, but it doesn't have the nefarious English connotations. It's more like a musician jamming someone else's guitar riff, it's seen as a talent worthy of applause. Slate had a great article in 2012, "The Chinese Steve Jobs is Probably a Pirate". I'm now working with 3 researchers at universities to document what we call the "Tinkerer Blessing", which is the opposite of the "Resource Curse"... correlating that emerging markets with a lack of natural resources develop better through technology repair and "grey market" activity. Simon Lin of Acer, Terry Gou of Foxconn, both started in video display refurbishment, by the way. http://www.slate.com/articles/...