Finding an iPhone for sale in Hong Kong is simple. Walk out the door of your hotel and amble over to the first camera shop you see … Pretty safe bet that they’ll have handsomely boxed iPhones behind a glass display case. Downtown Kowloon seems to be filled with these camera stores. How many cameras can they possibly sell? A whole bunch it seems. Once you arrive in Hong Kong you quickly develop a case of camera envy. Well to do Asian tourists take their photography seriously. You see them along the waterfront setting up their tripods with expensive telephoto lenses focused on the amazing skyline. You then pull out your pathetic little 4-megapixel point and shoot and begin to feel like a schmuck. After uploading some of my photos, I quickly realized that my camera was wholly inadequate for capturing the grandeur of Hong Kong. But I resisted temptation to spend big on new camera equipment and only managed to frustrate the camera store salesmen.
iPhones on sale in an unauthorized Kowloon reseller
When I say “frustrate” the camera sales reps, that may be putting it mildly. In one particular store I asked to see an unboxed iPhone 3GS. The salesman obliged and handed me a new iPhone. A few quick swipes on the screen and I came across the infamous black raindrop icon (Blackra1n application). That’s when the fun began:
Me: “I thought you said this iPhone was legally unlocked?”
Him: “Of course it is legally unlocked,”
Me: I handed him back the iPhone and turned away.
Him: “What is the problem? … You don’t want to buy?”
Me: “Yes … but only if the iPhone is legally unlocked and not jail-broken.”
Him: “I told you it is legally unlocked” he repeated, this time with some impatience in his voice.
Me: “Then why do you have a jail-breaking application loaded on this iPhone???”
He did not respond and I turned to inspect some of the expensive cameras in another glass case. Moments later I turned back only to realize that my now agitated sales rep was staring intently in my direction. It was not a normal stare. It was as if he was stabbing a thousand daggers into my heart. He would not look away. I turned again to look elsewhere. But my eyes turned back again to my adversary. His eyes were still fixed in my direction and his expression was even more intense. This time I did not look away. We were in an old fashioned stare-down. Cue the soundtrack from “The Good, The Bad and The Ugly.” Who would blink first? Not me! This would have made for good comedy if the emotions were not running so high. I had dared to question the integrity of this salesman and he was livid. If he had been packing a pistol I might not be typing these words. It was that intense. Finally he asked me to get out of his store. With pleasure! I was off to more friendly venues.
As a bit of background… the black rain icon is for the Blackra1n jail-breaking application used to unlock iPhones. The “black raindrop” is entirely unnecessary on a legally unlocked iPhone. The appearance of such an app is a good indication that your iPhone is jail-broken. A jail-broken iPhone is prone to “bricking” post software updates. You will also void your warranty if you jail-break and there are a few viruses now targeting jail-broken phones.
Official iPhones can be purchased without a contract (“unlocked”) in Hong Kong, but only from official distributors or via the Apple online HK store. These iPhones must be shipped to a Hong Kong address. Only a minor annoyance to smugglers.
I found that all of the camera stores in Kowloon would tell you that their iPhones are official and legally unlocked. However, their prices belie this assertion. In every instance I was asking to buy a 32GB iPhone 3GS. Most wanted 7000 Hong Kong Dollars for this model … but if you sound knowledgeable, serious and are willing to walk, they’ll drop their price to around 5800 (USD $750). Apple does not discount their iPhones and the official price for the 32GB iPhone 3GS is 6288 Hong Kong Dollars (USD $811.75). Yet the camera stores are not selling at a loss. What I suspect is happening is that most are buying lower cost iPhones from other markets and then jail-breaking them. They will of course tell you that the iPhone they are selling you is a “legally unlocked” Hong Kong iPhone backed by an international iPhone warranty from Apple. Yet jail-broken = voided warranty. The lesson here is to buy only from an official iPhone distributor in Hong Kong, and they are:
- “3” Shop – owned by Hutchison the official iPhone carrier in Hong Kong
- Fortress
- Mobile City
- Broadway
- Apple’s online HK store
Mr. Li Ka Shing - Owner of Fortress and mobile carrier 3 (Hutchison)
I shopped all of the authorized iPhone distributors in Hong Kong. Hutchison’s “3″ Shops and Mobile City had iPhones but Fortress and Broadway were out of stock and were taking customer orders. I was impressed by the Fortress and “3” Shop (Hutchison) stores. Great iPhone signage with friendly, knowledgeable and professional staff. A stark contrast to the rogue camera stores. Both Fortress and Hutchison “3” are owned by Mr. Li Ka Shing, No.11 on Forbes list of Billionaires (net worth well north of USD $20 billion).
Hutchison “3” has a new auto-pay plan that’s quite popular. If you qualify for a DBS (Hong Kong bank) ComPass Visa, “3” will allow you to purchase the iPhone without any upfront deposit. Your monthly plan fee in deducted each month from your account and so too is the cost for the iPhone, which is paid for in installments over the 24-month contract life. The grid below shows the plan in Hong Kong Dollars. $100 Hong Kong Dollars = about USD $12.90. Naturally the more expensive monthly plan options (with more data + calling minutes) reduce the cost of the iPhone. The enticing aspect of this DBS plan is that it requires minimal upfront cash outlay.
On Safari in Sham Shui Po
On Sunday I an opted to do some iPhone exploration away from the tourist zones. I had heard about Kowloon’s Sham Shui Po district. While Shenzen may be the primary source of components for Shanzhai electronics, the word on the street was Sham Shui Po sources also had supply. I had to go see for myself. It was fun. My cabbie dropped me off at 94A Yen Chow Street and pointing to the Golden Computer Center sign said “you find computers here.”
I wandered into the building only to find the mall storefront screens rolled down and locked up. There was a security guard at the front and he had no problem with me wandering though the empty hallways. He explained in broken English that the mall would open up at 11 a.m. I had a good 90 minutes to kill. Even in its empty state, the mall revealed its secrets.
iPhone casings on sale at Golden Computer Center
Most storefronts had glass windows that gave a good idea what they were offering. There were at least 200 storefronts covering three floors. Each store had a special focus yet all were selling some type of computer component. It was a computer do-it-your-selfer’s dream. But it wasn’t just computers. Want to build your own mobile phone from scratch? No problem. Parts aplenty here. There were also a few stores selling iPhone and iPod casings. Must be a market for that sort of thing (he says sarcastically).
I had time to kill before the mall opened so I wandered out into the neighborhood to take in the sights. I was well away from the hotels and prime tourist zones and that was fine by me. Plenty of local color. This was the real Hong Kong. I was only a block or two into my neighborhood stroll when I encountered a street market. It was still early and many merchants were in the process of rolling out their wares. It wasn’t long before the streets were crowded with shoppers. 
I walked the block and soon realized that this was not simply a half-block market but rather a very large neighborhood quadrant of street merchants. You could find just about anything here from the mundane to the exotic. I’ll spare readers a description/photos of the butcher shops … I’ll just say goat heads, pigs feet and live fish.
What fun! The crowded streets were a people watchers dream. Being a 6’ 4” Caucasian I literally stood out from the crowd and received more than a few looks from the most youthful. Who was this giant among us they must have wondered?
I did not expect to find much related to iPhone in the midst of this eclectic street bazaar. Oh but I was wrong.
3 Shop in Shum Shui Po
I turned the corner on to Fuk Wa Street where I found the neighborhood “3” Shop, and the China Mobile store just across the way. Both stores were filled with customers. Several were signing up for service and others were paying their bills. Both stores had e-pay terminals and check drop boxes for customer convenience.
There were many real and fake iPhones on display at this street market and I encountered two of the most charming Shanzhai ji sales girls in all of China just across from the “3” store. As mom was showing me her phony “iPhones” these two little girls kept smiling and giggling and pointing at the giant American (that would be moi). I didn’t buy anything but I insisted that mom accept a few token Hong Kong Dollars towards their education fund.
My two favorite Shanzhai sales girls - proud mom at right
Just a few meters from the Sham Shui Po subway I found the mobile phone mother-lode. The market spilled over into Apilu Street, where you can find every handset imaginable. If you walk both sides of Apliu and you’ll encounter no less than 50 storefronts with rollout carts filled with phones. Many real and Shanzhai iPhones were on display. Many photos > HERE
Apliu Street mobile phone "repair station" - unlocked in 60 seconds
There were also several kiosks set up for handset repair and jail-breaking. The technicians had plenty of business. I nervously handed over my iPhone 3GS and asked “how much to jailbreak?”
iPhone about to be unlocked on Apliu Street
The technician recognized that I had a 3GS and he said that this was not so simple. A regular 3G iPhone could be jailbroken in 5 minutes, he explained. But an iPhone 3GS would take about an hour and would cost me $350 Hong Kong Dollars. I thanked him and said that my carrier (AT&T) had “promised to improve 3G coverage in my area soon and that I would continue holding my breath.” He didn’t get the joke.
It was Apliu Street where I made another lifelong friend (not) of a sales rep. I wandered into a store where an American tourist was in the midst of haggling out a deal on a supposedly unlocked iPhone 3GS. The salesman had the box in hand but he was refusing to open it for closer inspection. The portly American was doing his best to bargain down the price but the salesman sensed a sale was close and he was holding the line at his “final” offer. I felt like a scientist on a National Geographic safari. I’d luckily stumbled upon the scene of what would soon be a grizzly kill. A good scientist is supposed to dispassionately observe from afar and let nature take its course. But I couldn’t just stand there and watch. So I opened my big mouth. I warned him that buying an iPhone from a non-authorized vendor was a risky proposition and particularly so if he wanted a legally unlocked iPhone. I told him that the Mobile City store in the Dragon Centre on Yen Chow Street (only a few blocks away) had the official unlocked iPhone and had supply. He thanked me profusely and quickly exited the shop. I looked back and saw that I was persona non grata in that store and I too beat a hasty retreat.
Official iPhone gets a look-see from window shoppers at the Dragon Centre Mobile City Store - one of four authorized distributors in Hong Kong
And so ended another adventure in Hong Kong.
iPhonAsia Travelogue series (Beijing, Shanghai and Hong Kong):
- iPhonAsia Travelogue Part 1: Wheels down in Beijing
- iPhonAsia Travelogue Part 2: Getting Oriented in Beijing
- iPhonAsia Travelogue Part 3: Into the heart of darkness – shopping the Beijing iPhone blackmarket
- iPhonAsia Travelogue Part 4: No stop signs in Beijing – The Shanzhai ji counterfeit culture
- iPhonAsia Travelogue Part 5: Secret rooms with hidden Shanzhai treasures (Shanghai)
- iPhonAsia Travelogue Part 6: Warming up in Hong Kong
- iPhonAsia Travelogue Part 7: The Hong Kong iPhone market
Mr. Butterfield, given your capacity for commercial disruption in Hong Kong, you’re lucky to still be 6′ 4″.