Lines of Resellers Returning New iPads at Fifth Avenue Apple Store

kas23 said:

Can someone explain to me how the iPad 3 can be in such high demand and everyone is buying one when the shipping times are now nil and resellers are now dumping their extras?

Not trying to be a smartass, just curious. I know this could easily be explained by increased supply, but is there any objective evidence that supplies are much higher this time around?

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The first clue was when pre-orders started. 16 out of the 18 models were still in stock 2 full days on Apple's website. Then all of a sudden every last model went on backorder. How can every single model just go out of stock at the same time?
Second clue was when Walmart started their sale at 12am. There were 5 at my walmart and they still had 2 units at 11:50pm.
Third clue was at Sams club and Bestbuy. Both stores had tons of units in stock on Friday, Saturday and Sunday.
Fourth sign is massive returns from scalpers.

I know for a fact iPad 3 will not beat iPad 2 sales. If Apple only used a faster next gen dual core or a quad core I would not be posting this. When people don't "see" speed differences over the previous product why bother upgrading. Plus it takes longer to charge, heavier and thicker. People don't need LTE that chews through data plans or cameras on 10 inch tablets.

Apple is using a Jedi mind trick on their website. People will see the backorder which gives the impression of high demand. Then when the customer see's them in stock at the stores Apple is betting that you will buy it. Apple could still have thousands of these sitting in their warehouses in the US but it looks worst when product is still sitting on store shelves. Smoke and mirrors.

cdmoore74 said:

When people don't "see" speed differences over the previous product why bother upgrading.

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Most iPad buyers are not upgrading from the previous model.

Most iPad buyers don't care about "speed" differences or the lack there-of at all, as long as it runs their most common apps fairly smoothly.

Most auto companies stopped selling their most popular models based on "speed differences" long long ago, instead advertising based on safety, comfort, mileage, handling, and curb appeal.

BJMRamage said:

They could have a 5 item return limit per day.

something to still accept them but make it a pain to do.
Track based on Driver's License or ID like Best Buy and pharmacies who can only sell X amount of allergy stuff.

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They originally tried to do something to do with purchases of the early iPads (or was it iPhones) they didn't take cash because they wanted to have charge cards and IDs to make sure people weren't buying them up. I think it just turned into a hassle for them...

Gary

firewood said:

Most iPad buyers are not upgrading from the previous model.

Most iPad buyers don't care about "speed" differences or the lack there-of at all, as long as it runs their most common apps fairly smoothly.

Most auto companies stopped selling their most popular models based on "speed differences" long long ago, instead advertising based on safety, comfort, mileage, handling, and curb appeal.

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Let me spin it in your words:

"Most iPad buyers don't care about "resolution" differences or the lack there-of at all, as long as it runs their most common apps fairly smoothly."

That's why ipad 2 users will not upgrade. The processor is no faster and the ipad 2 screen is not crap. Not only that but the ipad 3 takes almost 2 times longer to charge up because of the larger battery. The heat issue is no issue for me but it is for a lot of people especially ones with small kids. My personal feeling is that Apple was lazy this time around. Still number one with tablets but only because Google has fumbled out the gate.

charlituna said:

Nope. Once they made the sale they made it. That policy would only allow them to refuse to make the original sale.

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I wonder - they use an and, rather than saying "we will," so you could interpret as we can do A and we can do B; which doesn't imply we must do A and B.

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Kludge420 said:

You clearly have no concept of sustainable economics. (ad hominem removed)

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Actually I do. Arbitrage, amongst other things, helps make an economy work and be sustainable. Perhaps you'd prefer one where some central planner decides what can be sold and at what price, or if a company decides not to produce enough to meet demand no when else can bring in products to meet the unmet demand; but experience shows that isn't sustainable.

You really need to do some real research and learn some basic real world economics away from people who's only interest is in self profit. Macro economics isn't about how to run a business, it's about how to run a world. Too many people like you think they're one in the same.

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They actually are - from the guy arbitraging commodity prices to the guy selling cigarettes on the treat by the smoke and making a few bucks on the packs he buys and splits up. Despite what you say, the profit motive is what drives real world economies.

cdmoore74 said:

That's why ipad 2 users will not upgrade.

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You're right. That's why the vast percentage of the many many 3rd gen iPad customers are not previous iPad 2 owners. Apple is tapping a vast new market.

...but I upgraded anyway. The slightly better display is growing on me more than the slight increase in weight.

What are the chances of someone who buys one now getting one of these returns instead of "new" from factory? I personally wouldn't want to take the gamble that they were dropped, mishandled, etc because the reseller couldn't sell them.

Do these become refurbs instead or can they be sold as new?

It's interesting how the article specifically mentions Chinese resellers yet when someone in these forms notes how many Chinese nationals are waiting in line for iPads they get voted down as racist.

charlituna said:

***
Great. That keeps them in the store longer and makes more work dealing with them.

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That's fine, Apple employees are paid by the hour, scalpers are not.

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jman240 said:

What are the chances of someone who buys one now getting one of these returns instead of "new" from factory? I personally wouldn't want to take the gamble that they were dropped, mishandled, etc because the reseller couldn't sell them.

Do these become refurbs instead or can they be sold as new?

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They have to be opened and inspected. So they will then be sold as a refurb. They should be opened and checked before a refund is issued as I'm sure the idiots out there could have swapped an iPad 2 in there and resealed it

sclawis300 said:

ummmmmmmmm, yes it does. If you sell me something and tell me I have 14 days to return it to you no questions asked and I try to return it to you and you say no, then you are doing exactly what your first paragraph says you cant. does not work like that.

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Well, of course, if they make a 14 day return period part of the contract, then they have to honor it. But there's nothing in the law that requires them to do so. They could announce tomorrow that all sales at the Apple store for the new iPad are final and henceforth they will not take any returns at all. They would still be required to exchange or repair defective units (there are, in fact, retail durable goods warranty requirements or implied warranties in most states), but they're not under any legal obligation at all to accept returns.

I returned mine this past weekend, they didn't inspect the box at all. I also have not received the credit back on my card yet (I do have the emailed return receipt).

The Scalpers Are Screwed

I learned something interesting today about all those Asian scalpers returning iPads. I noticed on launch morning while I was waiting in line that the "workers" that the scalpers hired to wait in line were all paying with Apple gift cards. Of course this is because Apple doesn't accept cash for iPads. Today while I was in the Apple store exchanging my AT&T for a Verizon, I saw a couple of fellows with shopping bags full of iPads, returning them. That's when it hit me...all those returns are going back on the gift cards. The gift cards can't be redeemed for cash, only store credit. The salesperson told me that months before the launch, there would be people coming in buying tens of thousands of dollars in Apple gift cards. So although the scalpers may get their store credit back, they can't get their cash back. I think Apple was incredibly shrewd in limiting sales to non cash. So all those iPads go back on the shelves but they keep the sales because of the gift cards.

Blorzoga said:

I learned something interesting today about all those Asian scalpers returning iPads. I noticed on launch morning while I was waiting in line that the "workers" that the scalpers hired to wait in line were all paying with Apple gift cards. Of course this is because Apple doesn't accept cash for iPads. Today while I was in the Apple store exchanging my AT&T for a Verizon, I saw a couple of fellows with shopping bags full of iPads, returning them. That's when it hit me...all those returns are going back on the gift cards. The gift cards can't be redeemed for cash, only store credit. The salesperson told me that months before the launch, there would be people coming in buying tens of thousands of dollars in Apple gift cards. So although the scalpers may get their store credit back, they can't get their cash back. I think Apple was incredibly shrewd in limiting sales to non cash. So all those iPads go back on the shelves but they keep the sales because of the gift cards.

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I hope that is true. I'd like to see the scalpers trying to sell the gift cards for profit!

The Chinese practice which import tax higher, reaching 130-140 $. No wonder they were to return. But surprisingly, these returnees are young and beautiful.

jlc1978 said:

"Ad hominem removed"

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You might want to look up what an ad hominem is because the act of disparaging someone's character is not an ad hominem. If I said you were wrong because of some negative quality you posses (or I claim you posses) then that would be an ad hominem;

You've demonstrated a serious lack of basic critical thinking skills so I would strongly suggest you educate yourself better before attempting to make what you might think are rational arguments.

Until then you're just spitting into the wind and anyone talking to you is doing the same.