A brazen iPhone scam in Iran reflects its economic struggles and tensions with the West
A shop in Iran’s capital has been offering consumers in the Islamic Republic one of the hottest products in the country — an iPhone that came out in 2021
TEHRAN, Iran — With flashy celebrity ads and promises of deep discounts, a shop in Iran's capital had offered consumers in the Islamic Republic one of the hottest products in the country — an iPhone that came out in 2021.
But instead of getting their hands on the handsets, police and prosecutors in Iran allege customers found themselves ensnared by a business owner running a multimillion-dollar Ponzi scheme.
Yet the controversy surrounding the Kourosh, or “Son of the Sun,” Company extends far beyond just the alleged scheme.
It's a sign of the economic woes plaguing Iran after decades of Western sanctions, now accelerating as Tehran rapidly advances its nuclear program, helps arm Russia in Moscow’s war on Ukraine, steps up support for proxy militias in the Middle East and violently cracks down on dissent ahead of parliamentary elections on Friday.
When the government last year banned Apple's iPhone 14 and 15 from the Islamic Republic, the ban spurred a parallel economy for the older handsets, jacking up prices for the devices as many sought to put their depreciating Iranian rials into any physical commodity.
And even though Supreme Leader Ayatollah Ali Khamenei has denounced American luxury goods amid years of tensions with the West, consumers still want the phones and the prestige associated with them.
“There is a lot of demand," said Aram, a mobile phone shop keeper in Tehran who gave only her first name for fear of retaliation. Her customers keep asking for the «latest couple of iPhone models” — the ones that are banned.
“If they could allow legal imports… it
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