Yes smugglers in China do hurt apple iphone profits. In China it might be less expensive to buy an iphone for individuals residing in other parts of the world. So when smuggelers sell it for example in a different country for less than it is sold there but that they still can make a profit, apple looses that profit margin from different currency markets.
The Chinese government has yet to approve of the sale of the new iPhone 6. This has left a hole that smugglers are more than happy to fill, often at an astronomical cost. China, of course, is a huge market that Apple wants to tap into but until they are allowed to sell the iPhone 6 there, the smugglers will be the one's to profit.
I don't think Apple is hurt in any way financially, since the phones smuggled in are being legitimately bought by the smugglers who then re-sell them at outrageously high prices. Customers are the ones who suffer, because they won't get proper customer service and technical support. Consequently, the company's image and reputation might be damaged.
it is true to say that Chinese smugglers of Apple iPhone 6s are going to have some impact on Apple's profits, however the impact is likely to be very small and negligible. Genuine buyers have already gone out and spent a considerable amount of money on Apple's latest product at full price from genuine stores and they will be the majority of people who are buying the new product.