Chinese consumers are paying about $7000 for the Apple Vision Pro in the grey market

A burgeoning grey market for Apple’s highly anticipated Vision Pro mixed reality headset has emerged in China, with resellers seizing the opportunity to double the official price and entice eager enthusiasts ahead of its scheduled release next month. Numerous merchants are actively promoting the procurement of the gadget from the US to China, promising delivery shortly after the official launch on February 2. In exchange for this expedited access, buyers are required to pay twice the official price, as observed on the Xianyu app, a popular online flea market owned by Alibaba Group Holding. The Vision Pro headset, initially slated for release in the US, is available for pre-order at prices ranging from US$3,499 to US$3,899 for the 256 gigabyte, 512 GB, and 1 terabyte versions, respectively. Apple plans to introduce the product to additional markets, including China, the United Kingdom, and Canada, following the US release. Resellers, commonly referred to as Daigou in China, specialize in procuring and bringing back sought-after goods from overseas at marked-up prices. The Daigou market, primarily focused on luxury items imported for Chinese customers, witnessed nearly a 19 per cent growth, reaching 685 billion yuan in 2019. Despite the slowdown due to the Covid-19 pandemic, cross-border sales resumed as international travel restrictions eased. With the impending launch of these high-priced headsets, Apple aims to diversify its revenue streams, especially after experiencing a slight sales dip in the last financial year ending in September. The tech giant’s annual sales amounted to US$383 billion, with more than half coming from iPhone sales. While other players like Meta Platforms and Chinese brands like Pico have been in the virtual reality (VR) market, analysts believe Apple’s entry will reinvigorate the industry. The VR sector, facing a critical juncture, is expected to see a surge in growth, with IDC forecasting a nearly 47 per cent increase in AR/VR headset shipments this year, driven in part by the release of the Vision Pro. However, some companies have scaled back due to weak demand. Pico, the world’s second-largest VR brand and a ByteDance subsidiary, recently initiated job cuts, and reports suggest the cancellation of the Pico 5 model due to disappointing sales of the Pico 4. Despite these challenges, ByteDance remains committed to the industry in the long term.