China's Growing Black Market for Stolen iPhones Exposed

A recent report has shed light on the alarming growth of the stolen iPhone market in China, particularly in Shenzhen's Huaqiangbei district, known as the 'Stolen iPhone Building.' This investigation reveals how the illicit trade has become a significant global concern, with estimates suggesting a criminal industry worth over 50 million Euros annually. The report also highlights the role of Hong Kong in facilitating this trade and the disturbing tactics used by thieves to increase the resale value of stolen devices. Read on to learn more about this underground economy and its implications.

By Narendra Chaudhary May 22, 2025, 09:09 IST

The Rise of Stolen iPhone Trade in China

A recent investigation has unveiled a burgeoning market for stolen iPhones in China, particularly centered around a nondescript tower in Shenzhen's Huaqiangbei district, which has been dubbed the 'Stolen iPhone Building.' This location has become a pivotal hub in the global trafficking network for these devices.

Authorities in London estimate that the theft of iPhones contributes to a criminal enterprise worth at least 50 million Euros annually, with similar operations noted in cities like Paris and New York.

Specialized Markets for Illegally Obtained iPhones

The illicit iPhone trade has evolved to the point where the Feiyang Building features a dedicated floor for the sale of second-hand iPhones. While many of these devices are legitimate trade-ins, traders acknowledge that even iPhones that are remotely locked have a market value.

Hong Kong plays a crucial role in the extensive supply chain for stolen iPhones. An industrial building located at 1 Hung To Road in Kwun Tong reportedly houses numerous wholesalers who openly market phones labeled as iCloud Locked.

Disassembled Parts Fueling Another Industry

These markets also support a growing industry that sells parts after disassembling iPhones. Given the high demand for these devices, every component, from screens to circuit boards, is sought after in the aftermarket. Even locked devices can yield profits when their parts, such as circuit boards, RAM, and batteries, are sold separately.

The report highlights alarming instances where victims of stolen iPhones have received threatening calls from individuals in Shenzhen, pressuring them to disable the 'Find My iPhone' feature, which would significantly enhance the resale value of the devices.

Hong Kong's Role in the Trade

Hong Kong's status as a free trade port facilitates these operations, as it imposes no import taxes, allowing for the seamless movement of stolen iPhones into mainland China. The report indicates that the Hong Kong Police will take action as needed, based on the specific circumstances and legal guidelines.