How stolen iPhones are disassembled and sold: Inside the world of Chor Bazaars

Apple iPhones are known for their top-notch security features, making them a challenging target for thieves. Despite this, news of iPhone thefts continues to surface on an almost daily basis. But despite such tight security, the question arises- what happens to stolen iPhones? How are they unlocked and used when Apple’s ecosystem makes tracking and access so difficult? In this article, we will tell you the ugly truth of the black market, and how these stolen smartphones are used and disassembled.

iPhone’s journey to Chor Bazaars/Black Market

Most of the stolen iPhones are not directly used or sold in local markets. Instead, they find their way to underground black markets, known as Chor Bazaars (Black market), far from the reach of common buyers and authorities.

China's Shenzhen: The Hub of Black Markets

The world’s largest black market for stolen electronics, including iPhones, is reportedly in Shenzhen, China. Markets like the Yuanwang Digital Mall and Luohu Commercial City are notorious hubs for stolen phone trade. These markets are known for their expertise in dismantling and selling phone parts, rendering the devices untraceable.

How Are stolen iPhones used?

Disassembly into Parts: In these markets, iPhones are disassembled, and their parts are sold individually. This method ensures that the phone cannot be tracked or locked via Apple’s security systems.
Global Black Market Trade: According to a report from the United States Trade Representative Office, stolen iPhones are often smuggled to Shenzhen via sea routes. The operation is highly secretive, making it difficult for authorities to trace these activities.
Limited Unlocking: While many black-market experts can bypass smartphone security, iPhones are exceptionally secure, making them nearly impossible to unlock for resale as functional devices.

China leads the global trade in stolen goods

The U.S. Trade Representative Office revealed earlier this year that China is the largest trader of fake and stolen goods. Shenzhen continues to dominate this illicit trade, with stolen phones and their parts playing a significant role.

Why does Apple security matter?

Apple’s high-tech security features, such as activation locks and Find My iPhone, make it difficult for thieves to use stolen devices. While this protects users to some extent, it has also led to an underground industry of dismantling and exporting stolen iPhones.