Russians Snap Up New iPhones in Hong Kong Amid Scarcity Back Home

With the release of the iPhone 16, Hong Kong Apple stores have attracted an unexpected influx of Russian shoppers, cash in hand, eager to buy the latest devices at a premium. Russian buyers are offering up to 12% above retail prices to locals who have just purchased the devices, creating a brisk resale trade.

This unusual shopping trend stems from the impact of Western sanctions and Apple’s halt on sales in Russia since March 2022, following Russia’s invasion of Ukraine. The resulting scarcity and high prices — up to 70% more than standard rates — have made iPhones a rare and sought-after item in Russia. Despite government moves to permit “gray imports” of foreign products, the demand for Apple’s newest releases remains high.

One Russian buyer, Nick Alexenkov, was seen outside an Apple store in Hong Kong’s Tsim Sha Tsui district purchasing iPhones directly from customers who had just bought them. Alexenkov explained he expected to make up to a 25% profit on each device, even after paying above retail price, due to the steep markups in Russia.

Among the most popular models is the 1-terabyte Pro Max, priced in Hong Kong around $2,000. In Russia, major retailers list this model for up to 249,999 rubles ($2,710), a significant premium over international prices. Private sellers on Avito, a Russian classifieds website, list similar models for even higher prices, as wealthy Russian buyers show an eagerness for new colors and features.

The tax-free shopping environment in Hong Kong further attracts Russian parallel traders who are attempting to meet Russia’s continued demand for luxury electronics. Outside Hong Kong’s IFC Mall, a group of Russian men with minimal English worked with local buyers to negotiate deals on the latest iPhones, with one even bringing his English-speaking son to assist.

Asked about the risks involved, Alexenkov’s son simply remarked that wealthy Russians are drawn to the new models and colors, underscoring the lengths some buyers are willing to go to secure the latest technology amidst supply challenges back home.