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Old Mar 25, 2012, 05:18 PM   #1
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Reselling Apple Products on Launch Day: "This whole game is over"




Last week, we reported on long return lines at Apple's 5th Avenue retail store filled with Chinese iPad resellers. Resellers try to buy up as many iPads as possible on launch day to quickly turn around and sell them for a profit. According to our report many of these resellers were returning their iPads with some individuals returning up to 30 devices at one time. We speculated the reason for the returns was due to a an adequate launch supply of new iPads by Apple.




Reuters dug deeper and found that these resellers are having trouble making a profit on Apple's most recent launch, despite a healthy demand for the product in China.

Reuters reports that some of the new pressure comes from Chinese custom authorities which have told shipping companies to stop accepting iPad shipment orders. Meanwhile, the iPad has been added to a list of taxable items entering China. The end result has been much tighter margins than in the past.
Quote:
An electronics dealer in Oakland, California, said he struggled to break even this year, a far cry from previous iPad releases when he shipped upwards of 1,000 tablets and pocketed profits of $50 to $100 per device sent to his buyer in Hong Kong.
The other major factor seems to be an abundance of supply and a simultaneous launch in 10 countries including Hong Kong. As a result, black market prices for the new iPad in China has been falling.

One dealer even said "This whole game is over", due to the overabundance of supply, describing the market as "flooded".

Article Link: Reselling Apple Products on Launch Day: "This whole game is over"
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Old Mar 25, 2012, 05:20 PM   #2
benhollberg
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Had the same problems this year. Last year buying dozens of iPads a day making $500-$1000 per day for two weeks and this year I still have inventory and will be lucky to break even.
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Old Mar 25, 2012, 05:20 PM   #3
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Originally Posted by benhollberg View Post
Had the same problems this year. Last year buying dozens of iPads a day making $500-$1000 per day for two weeks and this year I still have inventory and will be lucky to break even.
I feel really bad for you…NOT
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Old Mar 25, 2012, 05:21 PM   #4
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Sorry Apple

The iPad has oversaturated the market, time for android tablets to rise!
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Last edited by Invincibilizer; Mar 25, 2012 at 05:33 PM.
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Old Mar 25, 2012, 05:21 PM   #5
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I assume this is good news for regular customers - less people going into stores and buying up as much supply as they can means more for everyone else.
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Old Mar 25, 2012, 05:22 PM   #6
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Looks like those profit sellers won't be able to do it now.

I remember the Ipad 2 was really hard to get a hold of but now there's enough on the market for everybody.
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Old Mar 25, 2012, 05:23 PM   #7
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I live in China and my family sent me a Kindle through the mail. I had to pay RMB300 (around US$50) to Customs. It's supposed to be 10% of the value of the device. Then I look at the customs receipt and it lists my Kindle as worth RMB3000. Now I know why...friggin resellers.
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Old Mar 25, 2012, 05:24 PM   #8
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Its really ridiculous to have a long thread in the IOS blog section and now put it in this forum
http://forums.macrumors.com/showthread.php?t=1347479
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Old Mar 25, 2012, 05:27 PM   #9
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Love it. Hope these scammers wasted scores of hours and cried in frustration.

Thank you Apple.
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Old Mar 25, 2012, 05:28 PM   #10
Formul
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Originally Posted by Invincibilizer View Post
Sorry Apple

The iPad has reached its saturated the market, time for android tablets to rise!
i guess you missed the part where Apple sold more iPads than ever this time
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Old Mar 25, 2012, 05:30 PM   #11
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2 guys in my office bought 2 each, one to keep and one to sell for profit. They decided to return the unsold ones on Friday. Seems Apple did a great job in the supply of these devices this time.
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Old Mar 25, 2012, 05:31 PM   #12
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GOOD. Shouldn't be allowed refunds either. Lessons must be learnt.
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Old Mar 25, 2012, 05:32 PM   #13
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I guess for the next launches Apple will limit the return policy to 2 or five per ID. I can imagine that there is substantial cost involved for Apple with shipping and accepting the returns, checking and reselling those iPads.
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Old Mar 25, 2012, 05:33 PM   #14
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Originally Posted by benhollberg View Post
Had the same problems this year. Last year buying dozens of iPads a day making $500-$1000 per day for two weeks and this year I still have inventory and will be lucky to break even.
Absolutely breaking my heart.

I weep for your plight...
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Old Mar 25, 2012, 05:35 PM   #15
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Quote:
Originally Posted by benhollberg View Post
Had the same problems this year. Last year buying dozens of iPads a day making $500-$1000 per day for two weeks and this year I still have inventory and will be lucky to break even.
A sad story indeed.
Quote:
Originally Posted by Invincibilizer View Post
Sorry Apple

The iPad has oversaturated the market, time for android tablets to rise!
Um no. I think they simply figured out supply and ran with it.

Last edited by r.j.s; Mar 25, 2012 at 05:53 PM. Reason: cleanup
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Old Mar 25, 2012, 05:36 PM   #16
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I returned my iPad because I ended up getting another one tax free
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Old Mar 25, 2012, 05:37 PM   #17
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Glad the "resellers" aren't making a profit. What they do (did?) should be illegal.
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Old Mar 25, 2012, 05:37 PM   #18
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Looks like Apple did what was necessary to remove these parasites from the hot new iDevice distribution eco-system. Cut them off financially at the knees by working with customs authorities and purposely flooding the biggest neighborhoods of potential end-user buyers, to thus keep them away from non-authorized resellers. Apple only has to randomly do this every other new device intro or so, and the front companies that pay people to get in line will get cold feet after taking their first loss.
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Old Mar 25, 2012, 05:39 PM   #19
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It's nice to see everyone who wants to buy an iPad not have to wait. I'm glad to see Apple plan so well for this launch!
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Old Mar 25, 2012, 05:43 PM   #20
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I ordered 2 and returned one

Due to the initial LACK of information, while only wanting one, I ordered two.
One AT&T and one Verizon. There was very little information on using these globally and I was trying to pick the best one for that purpose...

Eventually, I decided on one and canceled the other. But had it taken me longer to decide, I'd have had to return one later.

Actually, when I canceled the one, the other was far enough along I couldn't have canceled it (and then it sat in a FedEx warehouse for days and days) so I almost couldn't.

Obviously, my plan wasn't to resell it, but I had assumed that I could have if I needed to. I'm glad I didn't go that route.

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Old Mar 25, 2012, 05:47 PM   #21
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Originally Posted by Ellmer View Post
GOOD. Shouldn't be allowed refunds either. Lessons must be learnt.
It's amazing how ignorant some people are. The resellers are simply taking part in capitalism. It's what the U.S economy is based on. All companies do it. Buy things at one price, sell them at a higher price, make a profit. The resellers do nothing wrong. They wait in line, they use real money, they find workers to wait in line, they (presumably) pay them to do so. They find buyers, they pay expenses, they make a profit. Sound familiar? Is it just because many of them may be of Asian descent that we view them with such disgust? Or is it jealousy, because we didn't make a buck ourselves. Stop being such hypocrites. Don't you think Apple uses its muscle to buy up parts and get cheap prices for labor and other things to raise their profit margin? What's the difference?
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Old Mar 25, 2012, 05:49 PM   #22
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Love it. Hope these scammers wasted scores of hours and cried in frustration.

Thank you Apple.
Explain how they are "scammers". Who are they scamming?
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Old Mar 25, 2012, 05:49 PM   #23
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Originally Posted by benhollberg View Post
Had the same problems this year. Last year buying dozens of iPads a day making $500-$1000 per day for two weeks and this year I still have inventory and will be lucky to break even.
Excellent. Hope you wind up losing money because it's guys like you who make it harder for average people to get an iPad.
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Old Mar 25, 2012, 05:50 PM   #24
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Originally Posted by firewood View Post
Looks like Apple did what was necessary to remove these parasites from the hot new iDevice distribution eco-system. Cut them off financially at the knees by working with customs authorities and purposely flooding the biggest neighborhoods of potential end-user buyers, to thus keep them away from non-authorized resellers. Apple only has to randomly do this every other new device intro or so, and the front companies that pay people to get in line will get cold feet after taking their first loss.
Parasites?
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Old Mar 25, 2012, 05:51 PM   #25
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personally I think scalpers lined up to sell back to Apple at cost Hilarious

whether they are buying up all the good seats to an event or buying available product so the general public cannot get said items ... scalpers are greedy jerks
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