The launch of the iPhones always ignites a wave of enthusiasm among resellers and buyers in the UAE, eager to capitalize on the latest Apple release each year. However, with the debut of the iPhone 16, the fortunes of some resellers soared, while others faced staggering financial losses, with some losing up to Dh200,000.
Every year, the release of a new iPhone model presents an opportunity for many UAE residents to make quick profits by reselling the devices at a premium. The recent launch of the iPhone 16 on September 20 was no different, as buyers who had pre-booked the device online rushed to Apple stores to collect their phones. The first batch of lucky recipients quickly sold their phones to eager resellers, marking up the price by Dh2,500 on the launch day.
The resellers, hoping to capitalize on this opportunity, then attempted to sell the phones at an even higher premium. They anticipated selling the device at an additional Dh3,000, which would leave them with a profit margin of around Dh500 on each sale. However, this year, the market took an unexpected turn. Many resellers who purchased iPhones from residents who had pre-booked the devices, anticipating high demand, found themselves in a difficult position when supply flooded the market and prices dropped significantly within days.
JA, an electronics dealer in Dubai, described how he and his team had positioned themselves to make a fortune from the iPhone 16 launch. “We bought nearly 80 phones on the first day from people who had pre-booked their devices. We stationed employees at malls in Dubai and Abu Dhabi, and we were paying a premium of Dh2,000 for each Pro Max model,” said JA. Initially, the strategy seemed to work. “On the first day, we made some profit on a few devices. We already had bookings, and our clients had paid an advance of Dh100 to Dh500 even before the launch. But they didn’t come to pick them up on the first day as expected,” said JA.
“Since our clients weren’t collecting their devices, we tried to sell them with a lesser profit margin of Dh100 to Dh300 on the first day, as the demand suddenly shot down and we managed to sell only 20 units. Hoping that demand would increase, we decided to stock the phones and sell them on the following days,” added JA. However, things went downhill from there. JA and his team had paid a total premium of over Dh160,000 for the 80 phones, and the situation worsened as more devices flooded the market. “On the second day, my employees bought another 57 devices, paying a premium of Dh800 to Dh1,000 per phone,” said JA. “We expected demand to increase, as it usually does in the first few days after the launch. But the shocking part was that people weren’t coming to buy them. Even the clients who had paid advances backed out.”
The third day of the launch brought the biggest blow to resellers' business in the UAE. “Thousands of devices from Hong Kong, Singapore, the US, Japan, and other countries flooded the UAE market, and suddenly, the demand was gone,” said Altaf (name changed), another electronics dealer in Dubai. “The iPhone 16 Pro Max models from abroad were available at below retail price everywhere, with no need to pay any premium,” said the dealer. Facing a stockpile of unsold iPhones and with the market saturated, JA revealed that his business is now facing losses of nearly Dh200,000. “We couldn’t make any profit. We are still stuck with these phones and it’s becoming nearly impossible to sell them by keeping profit,” said JA.
“I lost around Dh100,000 by purchasing the phones at a premium, hoping to sell them at a higher price later,” said MP, another reseller. “But the market became flooded with phones from other countries, and there was no more demand.” Like many others, MP based his investment on past successes. “Last year, I made a profit of Dh70,000 on the iPhone 15 models in just 10 days. Many resellers made profits over the years, and in previous years, demand extended well beyond November,” said MP. “We expected the same trend this year and stocked up on the iPhone 16 Pro Max.” Unfortunately, the influx of international stock led to an oversupply in the market, wiping out any chance of turning a profit. “It’s tough this year. The market didn’t react the way it did in previous launches,” said MP.
