Low Turnout for iPad Mini Launch in China, But Scalpers Still Hoarding Supplies

[MacRumors]

The Wall Street Journal reports that turnout for the launch of the iPad mini and fourth-generation iPad in China today was fairly low, with Apple's lottery system and two-per-person limits for in-person sales of the iPad mini said to be making it more difficult for scalpers to run their operations.

iPad mini on display at Apple's Sanlitun retail store in Beijing

The scalpers were still present, however, as the report notes that a number of them were set up some distance away from Apple's Sanlitun store in Beijing to collect units purchased by others.

On Friday morning, Apple's Sanlitun store opened to no crowds, but a large group of scalpers was standing a hop and skip from the store entrance collecting iPad Minis from Chinese customers in exchange for cash. Behind them, on a nearby bench, sat tall stacks of the devices.

A Wall Street Journal reporter was accosted by the scalpers after he tried to film the scene, but Apple and mall security declined to intervene in the situation.

Li Yongqiang, 18, said he wasn't picked in the lottery to purchase the iPad Mini but still arrived at 8:30 a.m. to observe the atmosphere. Mr. Li said scalpers met with a crowd of about a hundred outside the Apple store to discuss the process of purchasing the iPad Mini. The crowd appeared to be predominantly made up of customers there to purchase the product on behalf of scalpers, he added. It's not clear how the scalpers were able to get so many of their people selected for the lottery.

Apple continues to hold a dominant share of the tablet market in China as it does in many countries around the world, and with China now responsible for 15% of the company's revenue, Apple is no doubt hoping for strong sales of the latest devices heading into the end of the year.

Article Link: Low Turnout for iPad Mini Launch in China, But Scalpers Still Hoarding Supplies

[D.T.]

A local resident was interviewed about his interest in an iPad Mini, and said, "I build the things all day long, I sure as hell don't want to see one at home..."

[digitalhen]

This sounds very familiar. In Hong Kong, scalpers were there on launch day for the iPhone 5, and iPad Mini, with "collectors" waiting right outside the door with stacks of them. Nobody did anything about it.

No one I know has been able to win the "lottery" for an iPhone 5, despite playing it every single day.

But scalpers... they always win.

[thelink]

Mr. Kappa over there looks like he's pretending not to use one of those minis. Lol

[puckhead193]

what I don't get is how do you have thousands of dollars worth of apple products just sitting there and no one comes up and tries to rob them....

[Llebnoj]

They cleaned out every store in the US, so they have gotten their fix. Some regulation would have been nice.

[jayducharme]

There may have been no lines, but it still looks like there are a lot of people in that store.

[rollzst]

Originally Posted by D.T.

A local resident was interviewed about his interest in an iPad Mini, and said, "I build the things all day long, I sure as hell don't want to see one at home..."

Erm no because they are not even build in Beijing!

[tzeshan]

16 GB WiFI iPad4 sells for 3688 RMB $593. This is higher than in Hong Kong.

[SockRolid]

Originally Posted by MacRumors

... The scalpers were still present, however, as the report notes that a number of them were set up some distance away from Apple's Sanlitun store in Beijing to collect units purchased by others. ...

At least there were 1. no riots and 2. no legit customers being turned away.

And seriously, doesn't Apple China advertise how and where to pre-order?
And isn't shipping free in China? You'd think pre-ordering would stop scalping.

Attention citizens of China: http://www.apple.com.cn

[iRCL]

Originally Posted by SockRolid

At least there were 1. no riots and 2. no legit customers being turned away.

And seriously, doesn't Apple China advertise how and where to pre-order?
And isn't shipping free in China? You'd think pre-ordering would stop scalping.

Attention citizens of China: http://www.apple.com.cn

There *were* legit customers being turned away, you just don't see it because it was done via a lottery that was rigged. Why bother coming in when you know there are none available to buy?

[Icaras]

Originally Posted by puckhead193

what I don't get is how do you have thousands of dollars worth of apple products just sitting there and no one comes up and tries to rob them....

Probably because this is China, a very strict communist country with probably more severe criminal penalty laws than your average western nation.

[gnasher729]

Originally Posted by digitalhen

No one I know has been able to win the "lottery" for an iPhone 5, despite playing it every single day.

But scalpers... they always win.

Only if people buy from scalpers.

[davidg4781]

Just curious... How does this lottery system work?

[ghost187]

I have a solution for scalpers. Why dont apple sell high end (64gb) iphone in majority for the first couple of months so u pay 200 extra weather you need the storage or not and apple makes money hand over fist. That way, instead of paying premium to a scalper you at least pay for storage.

[dojoman]

Apple is Doomed! /s

[mabhatter]

Originally Posted by ghost187

I have a solution for scalpers. Why dont apple sell high end (64gb) iphone in majority for the first couple of months so u pay 200 extra weather you need the storage or not and apple makes money hand over fist. That way, instead of paying premium to a scalper you at least pay for storage.

That makes sense. So if the scalper was dealing with loan sharks and can't unload inventory fast enough.... Make the scalpers take a loss. Not Apple's problem and everybody gets cheaper iphones. They aren't the ORIGINAL owner, so Apple doesn't have to honor them returning 20 at once either. That should get some legs broken when the scalpers can't pay the loan sharks... That's always fun to see.

Do that just once and the scalping will stop. And you are not cheating legit customers in any way... They get the BEST phone ... As Apple limits cheaper models to 8GB the 64GB models hold value longer even when a new model is released.

[thelink]

Why is there so many asians at that store?

[B2FiNiTY]

^ really?

[digitalhen]

Originally Posted by gnasher729

Only if people buy from scalpers.

Well, that's always going to happen with the limited supply Apple are giving to China, plus the delay in releasing it in the mainland because of regulators.

[Drunken Master]

Originally Posted by B2FiNiTY

^ really?

To be fair, they're the last race of people that most Americans have little problem with being openly racist against.

[thewitt]

The Chinese don't queue very nicely, so this lottery pre-order system is a very good way for Apple to control the crowds.

I don't believe it was rigged - two of my staff in China were able to get units - but the scalpers were buying units from those who purchased them legally for a tidy, immediate profit.

[somethingelsefl]

Originally Posted by puckhead193

what I don't get is how do you have thousands of dollars worth of apple products just sitting there and no one comes up and tries to rob them....

Probably the exact same reasons that people don't steal them in other countries.

MR moderators must have their hands full trying to keep out racism in every single China-focused post. It's unbelievable.

----------

Originally Posted by thelink

Why is there so many asians at that store?

What value does your comment add to MR? Is it even related to Apple in the slightest?

[Jimrod]

Meanwhile, back in England, the iPad Mini my girlfriend ordered last week with a "2-week" lead time has a scheduled arrival of December 28th... If China don't want 'em, we'll have 'em.

[Verbatim Cookie]

Originally Posted by Drunken Master

To be fair, they're the last race of people that most Americans have little problem with being openly racist against.

What about Arabs? Maybe they aren't a race, but still.