Russians Flock to Hong Kong Apple Stores Amid iPhone Shortages in Russia

In Hong Kong, the recent release of the iPhone 16 brought an unusual crowd to Apple stores: Russian buyers carrying large amounts of cash. These buyers were quick to approach local customers exiting with new iPhones, offering up to 12% above retail prices to secure the latest models.

One such Russian, Nick Alexenkov, shared with CNN his goal of purchasing as many devices as possible. The high demand for iPhones among Russians stems from Apple’s suspension of product sales in Russia after the country’s 2022 invasion of Ukraine, as well as Western sanctions restricting technology exports. The war has made premium smartphones rare and costly in Russia, where parallel imports are allowed but still challenging, resulting in iPhones being priced up to 70% higher than their original retail value.

While Russia’s major retailers, including MTS and M.Video-Eldorado, have managed to stock limited iPhone 16 models through unofficial import channels, individual Russian traders see profitable opportunities in Hong Kong. In the bustling district of Tsim Sha Tsui, Alexenkov and other Russian buyers focus on acquiring high-end models, particularly the 1-terabyte Pro Max, which they buy for around $2,000—a substantial markup from Hong Kong’s retail price but still competitive with Russian prices. At M.Video, for example, the same model retails for nearly 250,000 rubles ($2,710), allowing for significant profit margins.

Outside the luxurious IFC Mall in Central Hong Kong, Russians continue to negotiate purchases from local Apple customers. Language barriers are bypassed with translators—one buyer even brought his English-speaking son to facilitate deals. While some Hong Kong sellers try to negotiate for more, the Russians quickly offer to increase their bid slightly to close transactions.

Despite the risks involved, Russian buyers remain optimistic. One remarked that affluent Russians are willing to pay for the latest models and colors. With Hong Kong’s lack of sales tax adding further incentive, these traders are capitalizing on the scarcity of iPhones in Russia, catering to a market where high demand persists despite economic challenges.