I was in Hong Kong yesterday and visited New Vision2, one of my former customers and one of the largerest chain of Apple retail stores. In the past I had many conversations with the owner and he told me that the major of his profit came from selling iPod and iPhone accessories because there was so little profit selling Apple hardware. New Vision2 shelves used to be filled with Griffin, Belkin, Incase, Xtreme, Casemate, iSkin and other majore brands. They would make 100% on each sales which was a nice return. That has changed, now I see the China cases such as bumper, crystal shells, TPU iPhone 4 cases selling for the same price as they used to sell the major brands which is 150HK to 200+HK but now their cost is 6HK. I saw the same situation with other stores with the occasional brand name. I can only wonder what will happen when the Hong Kong consumers catch on and start buying directly from the source?