Are iPhones the New International Currency?
When traveling to a foreign country, the exchange rate may not always be in your favor, but your iPhone is as good as gold -- and with the markup you can charge, it may be better than gold.
Tue, February 25, 2014
"For as long as I've been traveling, there are certain luxury goods that do well in certain places," says CEO Kyle Wiens of iFixit, a distributor of spare parts and provider of free repair advice.
"You should be able to take anything from the United States, smuggle it in with your luggage and sell for 10 percent over what you paid, because you're bypassing import duties and taxes," Wiens says.
Some high demand items, such as the iPhone, can be sold well over 10 percent of cost. According to Bloomberg Businessweek, an iPhone 5S with 16GB that costs $700 in the United States can be resold for $1,196 in Brazil, $1,012 in Greece, $998 in Italy. A gold iPhone 5S with 32GB that costs $815 in the United States goes for $1,130 in Italy. It's quite a big markup considering paltry blue-collar wages of locals in these countries.
Buy Anything With Your iPhone
Americans also trade iPhones for services, such as housekeeping and maybe even SCUBA diving. Wiens, who travels the world researching the flow of material goods, was on a diving trip in Cabo San Lucas, Mexico, when the boat's captain proposed a trade: sell him iPhones from the United States at retail cost in exchange for a few SCUBA trips on Wiens' next visit.
Wiens does sell a few iPhones at U.S. retail cost to his business partners in China whenever he goes, as a goodwill gesture. It's not always iPhones, either. On his last trip to South Africa, he was asked to bring Leatherman Wave tools, which sell for around $100 in the United States and $200 over there.
Apple iPhones are some of the best U.S. luxury items to trade due to the relatively high probability that the iPhone is legit. Apple comes out with a new iPhone only once a year, and so most potential iPhone buyers have read about the latest model and its new features. With lesser-known phones, such as LG phones, people aren't as familiar with models and update cycles. Knowledgeable buyers are harder to trick, whereas confusion in the marketplace makes knock-offs easier to peddle.