The iPhone 4 has been something of a hit in China, where it went on sale last week, but the new device caused a stir for all the wrong reasons when Apple decided to lift their standard two-iphones-per-customer limit.

According to Micgadget, a Chinese website describing the situation, this happened on Wednesday and saw queues of people buying as many as 20 or even 30 iPhone 4s at a time, however these purchases were made with the intention of selling them on to the public, just like a ticket scapler would for a popular concert.

As the phones were boxed, wrapped and brand new, the job was probably not all that difficult, especially considering what happened next.  After a fight broke-out at the Beijing store between customers wanting a single iPhone 4 for themselves and queue jumping scalpers buying in bulk, store security intervened and the police were called, ultimately resulting in the store closing.  It’s not hard to sell a desirable gadget at an increased price when the store is shut!

Even before the no-limit rule, scalpers would queue every night to buy two phones each day, with one such individual claiming to have made 3400 yuan (about $500/£320) this way since the phone went on sale.

Order seems to have been restored now though, as the limit has been reduced to one iPhone 4 per customer and buyers must produce identification at the point of sale, plus the phone will be unboxed and activated there and then, preventing them being advertised as brand new.

Even with the possibility of exaggeration here, this is a far cry from the indifference the Chinese market showed the iPhone 3GS!