New iPhone Sells Fast in Gaza

$1,000 Smuggled Smart Phones Imported Through Desert Tunnels

getty images

By Reuters

Published October 15, 2012.
  • Print
  • Share Share

Apple’s new iPhone 5 is selling well in the Gaza Strip despite inflated prices, reaching the Palestinian enclave via smuggling tunnels even before high-tech hub Israel next door.

The cutting edge smart phone is being snapped up for almost double what it costs in the United States, its price jacked up by middlemen on its circuitous delivery route from Dubai via tunnels linking the blockaded territory with Egypt.

The iPhone 5 will not be available until December from mobile operators in tech-mad Israel, which along with Egypt maintains a partial blockade of Gaza to prevent the entry of anything that could be used for military purposes.

But the phones have been available for a couple of weeks in Gaza and they were on display on Monday in three independent mobile stores in a one-block radius in downtown Gaza City.

Prices ranged from 4,500 Israeli shekels ($1,170) for the 16 gigabyte model to 5,700 ($1,480) for 64 gb.

“I ordered 30 and I’ve sold 20 so far,” said one dealer. “We can order as many as we want. But most people are waiting for the price to go down. They’re pretty expensive.”

The iPhone 5, launched last month, sells for $650 and $850 in the 16 and 64 gigabyte versions in the United States.

Apple has no store or official dealership in Gaza, whose Islamist Hamas leadership is in conflict with Israel.

Israel’s Maariv newspaper last week reported that the iPhone 5’s controversial new Apple Maps application does not list Jerusalem as the capital of Israel and its built-in World Clock app shows Jerusalem as a city without an associated country.

Israel regards Jerusalem as its undivided and eternal capital. Palestinians claim East Jerusalem as the capital of the state they aspire to create in a peace deal with Israel.

For the 1.6 million Palestinians living in Gaza, transport and handling costs for all kinds of imports are inflated by bribes paid in Egypt to facilitate the smuggling, and Hamas adds sales tax at its end of the supply chain.

But despite the hefty mark-up and high costs in an aid-dependent territory with a crippled economy, market forces prevail.

“There are always some people prepared to pay whatever they must just to have the latest thing,” a dealer said.


The Jewish Daily Forward welcomes reader comments in order to promote thoughtful discussion on issues of importance to the Jewish community. In the interest of maintaining a civil forum, The Jewish Daily Forwardrequires that all commenters be appropriately respectful toward our writers, other commenters and the subjects of the articles. Vigorous debate and reasoned critique are welcome; name-calling and personal invective are not. While we generally do not seek to edit or actively moderate comments, our spam filter prevents most links and certain key words from being posted and The Jewish Daily Forward reserves the right to remove comments for any reason.





Find us on Facebook!
  • Half of this Hillel's members believe Jesus was the Messiah.
  • Vinyl isn't just for hipsters and hippies. Israeli photographer Eilan Paz documents the most astonishing record collections from around the world:http://jd.fo/g3IyM
  • Could Spider-Man be Jewish? Andrew Garfield thinks so.
  • Most tasteless video ever? A new video shows Jesus Christ dying at Auschwitz.
  • "It’s the smell that hits me first — musty, almost sweet, emanating from the green felt that cradles each piece of silver cutlery in its own place." Only one week left to submit! Tell us the story of your family's Jewish heirloom.
  • Mazel tov to Chelsea Clinton and Marc Mezvinsky!
  • If it's true, it's pretty terrifying news.
  • “My mom went to cook at the White House and all I got was this tiny piece of leftover raspberry ganache."
  • Planning on catching "Fading Gigolo" this weekend? Read our review.
  • A new initiative will spend $300 million a year towards strengthening Israel's relationship with the Diaspora. http://jd.fo/q3Iaj Is this money spent wisely?
  • Lusia Horowitz left pre-state Israel to fight fascism in Spain — and wound up being captured by the Nazis and sent to die at Auschwitz. Share her remarkable story — told in her letters.
  • Vered Guttman doesn't usually get nervous about cooking for 20 people, even for Passover. But last night was a bit different. She was cooking for the Obamas at the White House Seder.
  • A grumpy Jewish grandfather is wary of his granddaughter's celebrating Easter with the in-laws. But the Seesaw says it might just make her appreciate Judaism more. What do you think?
  • “Twist and Shout.” “Under the Boardwalk.” “Brown-Eyed Girl.” What do these great songs have in common? A forgotten Jewish songwriter. We tracked him down.
  • from-cache

Would you like to receive updates about new stories?




















We will not share your e-mail address or other personal information.

Already subscribed? Manage your subscription.