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by dancing_shark 3208 days ago
> Around iPhone 5 Apple started to put up additional $100 USD to ALL iPhone price in HK, as a way to combat the black market trading,

This post is informative, but can I suggest that we not adopt the "black market" nomenclature for cases where people buy hardware in one location, and then re-sell it?

Companies like Apple may brand this a "black market", but that implies that companies have a right to perform perfect price discrimination across the world.

https://en.wikipedia.org/wiki/Price_discrimination

I suggest we reserve the phrase "black market" for cases where contraband is being exchanged, or for cases where items were obtained through crime (e.g. the sale of stolen goods).

1 comments

I would say "black market" is fair if any part of obtaining and reselling the device is illegal. For example, in the early 80s there were US tariffs on RAM chips from Japan, if I recall correctly (I might have the country wrong). But some companies found they could buy in Japan, move them to another country, and then import them into the US via this other country without the tariff. It was illegal because they were still manufactured in Japan. When the government found out, those importers got in trouble. I would count those as black market since they were being brought into the country illegally.

Is that the case we're talking about here? Buy in HK with no taxes, then sell in another country without paying the taxes? If so, that still sounds "black market" to me. I'd think you'd have to pay the taxes in the country of sale regardless of where you obtained the device. If that's not what we're talking about, then I agree it's probably not fair to label them "black market."