The reporter's interpretation of the event is overly simplistic and completely wrong.
Apple switched to a reservation system in China in order to avoid lines that in the past turned chaotic and violent.
So if you have your reservation, you can waltz in at any time of the day to pick yours up. No need to try to get in front of others. No lines.
What this story neglected to report from more in-depth sources was that most people buying them in the store walked right outside and sold them to scalpers. That is an indication that demand outstrips supply. The only flop here is Apple's inability to make them fast enough.