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View Full Version : Why doesn't Apple let its resellers to sell iPad2 online?




celo48
Mar 10, 2011, 08:13 AM
By phone or in-store only. Is there a reason?



deeddawg
Mar 10, 2011, 08:26 AM
What's your source for this?

Doesn't look like BHPhoto or JR got the memo...

http://www.bhphotovideo.com/c/product/758418-REG/Apple_MC769LL_A_16GB_iPad_2_with.html
http://www.jr.com/apple/pe/APP_MC980LL_SL_A/

celo48
Mar 10, 2011, 08:40 AM
What's your source for this?

Doesn't look like BHPhoto or JR got the memo...

http://www.bhphotovideo.com/c/product/758418-REG/Apple_MC769LL_A_16GB_iPad_2_with.html
http://www.jr.com/apple/pe/APP_MC980LL_SL_A/

It says To purchase this product please call 800-806-1115 or visit our Retail Stores on the link you gave for J&R.

Not sure about BH but Macmall (I chatted, they confirmed), ABT, etc. all says call to order or in-store. No online shopping which means you lose the potential cashback from some stores such as 2% from ABT. Yes, it is not much but why not save if you can.

poloponies
Mar 10, 2011, 08:46 AM
By phone or in-store only. Is there a reason?

Because if you're purchasing online then the seller shouldn't make a difference (from their perspective) and they get 100% of the profit instead of sharing it with a reseller. Good business sense.

celo48
Mar 10, 2011, 09:02 AM
Because if you're purchasing online then the seller shouldn't make a difference (from their perspective) and they get 100% of the profit instead of sharing it with a reseller. Good business sense.

I am little lost. What is the difference between ordering online vs. ordering on the phone regarding the profit they make?

You mean because I can use cashback sites and they would lose 2%?

Davichi
Mar 10, 2011, 09:08 AM
First of all, if apple let these third parties sell ipad, they have to cut their shares with 3rd parties. So, profit is less. Check.

Then people try to take advantage with 2% cash back and again, apple lose money.

Considering apple is selling millions of these, they need to make as much as they can.

It will be available thru apple website from day one. That will be the best place to buy.

2% cash back isn't much. If you are worry about that 2% cash, then wait until these 3rd party retailers to sell it over online.*It will be a while. If may be like never.

poloponies
Mar 10, 2011, 09:08 AM
I am little lost. What is the difference between ordering online vs. ordering on the phone regarding the profit they make?

You mean because I can use cashback sites and they would lose 2%?

The difference between online ordering from Apple is that Apple gets $499 and keeps the difference between that and what it costs to make. Online ordering from a 3rd party means that Apple sells the iPad to the 3rd party for less than $499 so Apple gets less profit from the transaction. If it's online, then it's essentially meaningless where you're buying it from (again, from Apple's perspective).

For whatever reason a lot of people don't like phone ordering, they'll either do it online (with a minimal amount of clicks) or in person so it's not in direct competition with Apple's online sales.

celo48
Mar 10, 2011, 09:18 AM
2% cashback does not effect Apple at all. The reseller loses money. If they do it for that, fine. Sure it is not much but saving $17 on a $829 is still a saving not to mention some CB sites give more than 2% cashback which can save you up to $20. Sure, not much but $20 is $20.

What poloponies says make more sense BUT then how will you explain nationwide sales at Wal-Mart, Best Buy and Sam's Club. That is competing with Apple's retail stores, no?

camelsnot
Mar 10, 2011, 09:19 AM
By phone or in-store only. Is there a reason?

I'm assuming you haven't read other threads/forums/news/datawebz on the internetz, websites that will be selling it?

celo48
Mar 10, 2011, 09:22 AM
I'm assuming you haven't read other threads/forums/news/datawebz on the internetz, websites that will be selling it?

I am curious to know. Please give me a list because I could not find it, that's why I opened this topic.

camelsnot
Mar 10, 2011, 09:26 AM
What poloponies says make more sense BUT then how will you explain nationwide sales at Wal-Mart, Best Buy and Sam's Club. That is competing with Apple's retail stores, no?


just like anything. They get you in their store. They get some money back from each sale, although Apple typically rapes external stores selling their products. They make money off of other things you'll buy at the store at the same time, like non-Apple branded accessories, or other things you all of a sudden remembered needing. Also, they typically try to sell you their own branded extended warranty. Extended warranties are typically where they make the most money on hardware (any hardware).

poloponies
Mar 10, 2011, 09:32 AM
2% cashback does not effect Apple at all. The reseller loses money. If they do it for that, fine. Sure it is not much but saving $17 on a $829 is still a saving not to mention some CB sites give more than 2% cashback which can save you up to $20. Sure, not much but $20 is $20.

What poloponies says make more sense BUT then how will you explain nationwide sales at Wal-Mart, Best Buy and Sam's Club. That is competing with Apple's retail stores, no?

Of course the 3rd party retail stores compete with Apple's retail - but they're buying eyeballs with the lost profits. Apple has only so many stores so they're only too happy to have a store presence anywhere a Best Buy or Wal-Mart is found. Those are essentially found sales and a direct opportunity to compete with the Xooms and PlayBooks and TouchPads which are primarily available through 3rd party resellers.

As I pointed out above, sitting at your computer and ordering online it really doesn't make a difference where you're ordering from and from Apple's perspective it should be from them.

To summarize:

Apple trades profits for in-store presence and impulse buying.

Apple won't trade profits for online sales from your family room.

celo48
Mar 10, 2011, 10:19 AM
Update: AT&T and Verizon have also issued press releases announcing availability for tomorrow. In line with Apple's plans, AT&T will begin taking online orders at 1:00 AM Pacific Time, with in-store availability set for 5:00 PM local time. Verizon appears to only be offering in-store sales at "select" retail stores beginning at 5:00 PM local time.

So, AT&T is selling it online. I believe only 3G model but still. I started to believe not selling online is not Apple's request.

deeddawg
Mar 10, 2011, 10:28 AM
So, AT&T is selling it online. I believe only 3G model but still. I started to believe not selling online is not Apple's request.

It could very well be that some resellers want buyers on the phone or in-store as an opportunity to pitch accessories / warranty upgrades. :)

celo48
Mar 10, 2011, 10:30 AM
It could very well be that some resellers want buyers on the phone or in-store as an opportunity to pitch accessories / warranty upgrades. :)

Yep, I bet that is the reason. I see no other reason other than that.

celo48
Mar 10, 2011, 12:03 PM
Just confirmed. BH will sell them also online!

celo48
Mar 10, 2011, 03:31 PM
Geeeeeezzz.

NO online sales! BH needs to make up their minds :)

James B: Because of restrictions from Apple, we cannot sell the iPad or the iPad 2 online.

-I guess I was given wrong information

-why do they have the restriction?

James B: I'm sorry, I don't know the reason for the restriction.

- OK. Thank you James. Have a great day!

AMDGAMER
Mar 10, 2011, 06:01 PM
How about Amazon?