Stolen iPhones from various global locations are being secretly stored in a Chinese warehouse.
The Global Black Market for Stolen Electronics: A Deep Dive
The surge of mobile phone theft has become a significant, worldwide problem, fueling an underground economy for used devices. In metropolitan areas such as London, Paris, New York, and others, these crimes are on the rise.
In London, alone, the annual revenue from these crimes skyrocketed to £50 million in 2025, as per the London Metropolitan Police's data. In a single week, police confiscated 1,000 stolen devices and apprehended 230 suspects.
Victims often find that their phones end up on markets in far-off countries like China, where a bustling trade in pre-owned electronics flourishes.
The Financial Times conducted a comprehensive investigation, serving as a prime example of the global journey of stolen devices.
One evening in Kensington (London), two men on electric bicycles stole an iPhone 15 Pro from Aamrani. He decided to track the phone's path: it began its journey in a repair shop near Marylebone Station, then traveled around London. A week later, the signal emerged in Kowloon (Hong Kong), and eventually, it settled in Huaqianbei, a district in Shenzhen.
"It was fast, targeted, and executed with precision", Aamrani noted. After sharing his experience on LinkedIn, he realized similar instances were happening all too frequently.
The Huaqianbei Market: A Goldmine for Stolen Devices
The Huaqianbei district of Shenzhen City houses hundreds of small stores and several shopping centers specialized in electronics, spanning across 3 square kilometers.
Among these is Feiyang Times Tower, a grey-brown building distinguishable by propaganda banners. Colloquially known as "The stolen iPhone building" by users of Reddit, X, and specialized forums, it specializes in both legitimate trade-in devices and stolen ones.
Traders in the Huaqianbei area claim they can find a buyer for any part of a device. Feiyang Times stands out for its focus on foreign iPhone models, as they offer global app store access and, for American models, SIM card restrictions, and lower prices.
In the evenings, the market stalls come alive: buyers from China and other global South countries haggle over wholesale lots. Sellers offer a wide array of phones, including locked ones, though they remain cagey about the devices' origins.
For instance, Bilal Khan from Pakistan specifically sought 300 SIM-locked iPhones to sell in his country, where such phones are used for photography and videography, Wi-Fi connectivity, and gaming. These phones, tied to US operators, are subject to lower import duties in Pakistan. Munir from Libya planned to buy between 100 and 200 iPhone 13 Pro Max to make around $70 on each upon resale.
The Twisting Trail to Shenzhen
Stolen phones from Europe and the US reach Shenzhen through an intricate supply chain. The first link is Hong Kong - a tax-free port for imports and exports.
In the Kwun Tong area, at 1 Hung To Road, hundreds of wholesalers trade in used phones. Here, devices, including iCloud-locked ones, are sorted, labeled as "Has ID" (locked) or "No ID" (unlocked), and sold at auctions via WhatsApp and other platforms.
Sellers like Kevin Li, a Shenzhen phone trader referred to by his English name, visit these buildings and purchase devices labeled "Has ID" – likely stolen or snatched from their original owners in the US. These phones are then disassembled and sold in Shenzhen for a small profit.
Smaller batches are smuggled across the border in hand luggage, while larger quantities require specialized logistics companies and creative methods to circumvent Chinese electronics taxes, such as hidden devices in cars or collaborating with smugglers, as evidenced by posts in Chinese social media.
Li insists that sellers cannot hack password-protected phones. However, social media posts from the West suggest many victims of phone theft receive messages from individuals in Shenzhen, either asking or demanding that they remove data from their devices and deactivate Find My iPhone.
"For phones with ID, there are few markets," says Li. "But in Shenzhen, there's demand... It's a massive market."
Insight:
- These sophisticated networks demonstrate the global reach and complexity of the illegal mobile phone trade.
- Stealing, processing, and shipping stolen devices involve a variety of persons, including middlemen, repair shop owners, and traders in Shenzhen markets.
- Huaqianbei district is particularly known for its ability to dismantle and sell every part of a stolen iPhone, making even locked devices sellable.
- Though the risk of phone hacking is low, it's still recommended to securely wipe devices or enable Find My iPhone to minimize loss.
- The surge in mobile phone theft, as seen in cities like London, Paris, New York, and others, has created a lucrative underground economy for used smartphones, with many stolen devices ending up in markets in distant locations such as China, where Shenzhen's Huaqianbei district is notorious for its trade in pre-owned electronics.
- In the Huaqianbei district of Shenzhen City, a significant number of small stores and shopping centers specialized in electronics can be found, with Feiyang Times Tower standing out as a grey-brown building where both legitimate trade-in devices and stolen ones are sold, particularly focusing on foreign iPhone models due to their global app store access and lower prices.
- The trade in stolen smartphones from Europe and the US to Shenzhen involves an intricate supply chain, with the first link being Hong Kong, a tax-free port for imports and exports, and devices, including iCloud-locked ones, being sold at auctions via WhatsApp and other platforms in buildings such as 1 Hung To Road in Kwun Tong.