TikTok's brief but intense period of uncertainty for U.S. users has ignited overwhelming reactions, especially on eBay, where prices for iPhones with the app pre-installed skyrocketed. Following the app's temporary ban and subsequent reinstatement, listings for these iPhones have appeared at astonishing prices, some even approaching $5 million.
The whirlwind began when TikTok's services went offline around 10:30 p.m. on January 18, 2023. The United States Supreme Court had upheld legislation requiring TikTok's Chinese parent company, ByteDance, to divest its U.S. assets or face removal from app stores by January 19. Fortunately for TikTok enthusiasts, the app reemerged by Sunday evening. Yet, the victory is bittersweet, marred by the continued unavailability of the app for new downloads via Apple’s App Store and Google Play Store.
Investors and users alike were taken aback by the rapid sell-offs. eBay has seen listings for iPhones, with TikTok still installed, balloon to ridiculous amounts. Phones range from older models like the iPhone 11 to the very latest iPhone 16 Pro Max, with prices of up to $4,970,400 being listed—a staggering markup considering the brand new iPhone 16 Pro Max retails for about $1,000. The situation mirrors the aftermath of limited edition sneakers or snacks getting discontinued. Consumers appear eager to claim whatever access they can to TikTok.
Reports suggest modest bidding activity has begun on the higher-end listings, with some sellers humorously hoping to capture the app's explosive popularity—though the bids are typically below the thousands, resting around $50 to $200 at the moment. Some buyers, perhaps desperate for the platform, might still find themselves lured by the absurd prices.
So, why was TikTok banned, even temporarily? Lawmakers articulated stark national security concerns centered on data misuse by ByteDance, and this uncertainty placed immense pressure on app stores to comply with the new regulations. Even with Trump's executive order, which postponed the enforcement of the ban by 75 days, major players like Apple and Google have not reinstated TikTok or its fellow ByteDance apps such as CapCut and Lemon8, leaving many users bewildered.
Even after the app's restoration, those who deleted their TikTok are left high and dry since they cannot download it now. This is exacerbated by reports of “app rot,” which suggests degraded functionality for those who can access the app without updates. Many users are raising alarms about changes to their TikTok algorithms post-banishment. “Anyone else’s TikTok algorithm messed up due to the ban? Don’t tell me I gotta rebuild my FYP,” one user lamented on social media.
The continuation of TikTok's accessibility remains nebulous. Partnerships involving ownership stakes, possibly with the likes of Musk or Oracle's Ellison, could be pivotal for the app's future. Trump mentioned the potential value of TikTok reaching up to $1 trillion, enhancing its appeal as discussions heat up on its future ownership structure.
With the potential legal ramifications looming for Apple and Google should TikTok reemerge, such concerns include fines up to $5,000 per user for unauthorized access. This could lead to billions of dollars of potential liability for tech giants. Meanwhile, the government seems to be weighing its options about whether to enforce the divestiture law or provide alternative solutions.
For now, TikTok users can breathe easier: the app is functional, and content remains active for many. But the cryptic future poses several quandaries. Could this be only the tip of the iceberg for TikTok? The frenzy on eBay serves as both a bizarre reflection of its value and the collective anxiety among users. Only time will tell how this drama will play out, but for now, TikTok's impact—both financially and culturally—remains as potent as ever.