The highly anticipated release of the iPhone 16 on September 20 generated excitement among resellers and buyers in the UAE, as many hoped to profit from the latest Apple launch. However, what initially seemed like a lucrative opportunity turned into a financial disaster for many, with some resellers facing significant losses—up to Dh200,000.
Every year, the launch of a new iPhone sees UAE residents rushing to pre-book devices and resell them at a premium. This year’s launch of the iPhone 16 followed the same pattern, with resellers paying up to Dh2,500 above the retail price to obtain the phones from early buyers. These resellers expected to sell the devices for an additional Dh3,000, leaving them with a modest profit of Dh500 per unit.
However, the strategy backfired. As more devices became available, the market was quickly flooded, causing prices to drop sharply within just a few days. Resellers who had invested heavily in purchasing iPhones found themselves struggling to offload their stock.
JA, an electronics dealer in Dubai, recounted his experience. “We bought nearly 80 phones on the first day from people who had pre-booked them. We stationed employees at malls in Dubai and Abu Dhabi, paying a premium of Dh2,000 for each Pro Max model,” JA said. Initially, the plan seemed successful, with some units selling at a profit. However, clients who had placed advance orders for the devices failed to collect them, forcing JA to sell the phones at a lower profit margin of Dh100 to Dh300.
As demand dwindled, JA and his team continued to buy more devices, hoping for an uptick in sales. They purchased an additional 57 phones, paying premiums of Dh800 to Dh1,000. However, on the third day of the launch, thousands of iPhones from international markets such as Hong Kong, Singapore, the US, and Japan flooded the UAE, further driving down demand.
“Suddenly, iPhone 16 Pro Max models from abroad were available below retail price, with no need for any premium,” said another reseller, Altaf. The oversupply left many resellers, including JA, grappling with unsold stock and massive financial losses. “We couldn’t make any profit. We are stuck with these phones, and it’s becoming nearly impossible to sell them,” JA added, revealing that his business is now facing losses of nearly Dh200,000.
Another reseller, MP, shared a similar story. “Last year, I made a profit of Dh70,000 in just 10 days with the iPhone 15. We expected the same this year, but the market didn’t react the way it did before.”
The oversupply of iPhones from abroad wiped out any opportunity for resellers to profit from the iPhone 16 launch, marking a tough year for those banking on past successes.