The iPhone Duo is Burning a Hole in Speculators' Pockets... and the Collapse in Resale Prices is Wiping Out Profits

Speculators in China suffered significant financial losses after the resale price of the iPhone Duo, Apple’s first foldable phone, collapsed about a week after its market release, following bets on quick profits driven by limited supply and high demand.

According to a report by GizmoChina, traders rushed to buy large quantities of the phone at high prices, expecting its value to rise in the secondary market as with previous releases. However, declining consumer interest and improved supply levels pushed prices down rapidly.

The losses were exacerbated by issues related to the phone’s hinge and incomplete aspects of the software experience, which weakened buyer demand and turned most resale transactions into losses.

One trader at Yigao Digital City in Hangzhou, China, stated that almost all speculators are currently incurring losses. Industry estimates suggest that some traders have lost tens or hundreds of thousands of yuan due to accumulated inventory, given that the dollar is worth approximately 6.67 yuan.

The price collapse is also attributed to the rapid dissemination of information and phone reviews via social media platforms immediately after release, which has reduced opportunities to exploit supply shortages and information gaps for exceptional gains.

Improved supply, arriving faster than traders had anticipated, also helped shorten the period of price increases. Meanwhile, the phone’s high base price limited its potential buyer base, causing secondary market demand to decline once the initial wave of interest subsided.

These developments reflect the heightened risks of speculating on electronic devices, as markets have become more transparent and faster in the exchange of information. Preserving capital without losses has become an exceptional outcome for traders who bet on the continued scarcity of the phone.