A) they are breaking a lot of laws like customs, tax, littering, etc.
B) they are causing shortages.
They are not causing shortages, they are simply distorting who can get one. All the units scalpers buy go to end users who want to use the iPhone.
For example, a wealthy businessman who doesn't have time to stand in line but really wants the unit on launch day may choose to pay the $300+ extra to buy the unit from a scalper than take the day off (which may cost him $1,000+).
So ultimately on that same day or the next someone else who wanted an iPhone to use for themselves is getting one, except they're paying the price for that middleman.
To cause a shortage would mean that the scalpers are buying them and sitting on the units, removing them from the market. That is absolutely 100% not the case.
The shortage would have been the same, since thats decided by how many units Apple makes. The only difference is who gets to use them, whether its regular folks who want to pay retail or wealthier people (or people to whom its more important) and are willing to pay above retail to use the iPhone that or the next day.
And so far not a single person has been able or willing to answer my question:
How are you all coming to the conclusion that so many people in line are intending to resell their phones?
Hint: If you're going by race or looks, then you have no valid answer and are simply speculating at best, outright lying at worst.
I think given common knowledge about who uses iPhones and who is a fan of Apple, one can make some assumptions or guesses as the to the likelihood of whether or not someone in line is going to use the product or resell.
Notice I said make a guess as to the likelihood, not determine for sure. For example, I would say an 85 year old Asian man who doesn't smile and shows no excitement but has waited 24 hours in line MIGHT be a big fan, understand how to use smart phones, and simply not want to show he's happy and excited to get an iPhone.
I would say, however, that the odds are more likely that he's probably doing this for resale or is being paid to wait.
Similarly, a lot of us assume that some white kids who are in their 20's or 30's might be big fans of Apple, but we know many of them can scalp too. The line I was in there was a group of people who you would've thought were Apple's target demographic but were discussing their plans/strategies to resell out loud with each other.
You just never know how many of them are scalpers, but I would say since its fairly predictable that this shortage happens every time, enough people got wind in the public that you can participate in the launch and earn an extra $500 to $1,000 for a day's work that many people from all walks of life might want to participate.
The asian ones just stand out so much because it looks so obvious the way they do it:
1. Sometimes people are seen coming out of vans together and being handed cash or depositing their units nearby to a ringleader and being given cash, not to mention their lack of excitement or joy which would be typical among a true fan.
2. By their ethnicity and often age (many tend to be senior citizens who I would say no matter their ethnicity would be highly unlikely to know how to use an iPhone much less wait in line on launch day to get one for themselves) they stand out in a group of people mostly in their 20's to 30's with very occasionally 40's and majority white.
I do believe that everyone has a right to do what they want, and as I mentioned in my original posts, I would love to hear proof that the launch day/scalping situation turns people off so much they end up not wanting an iPhone at all.
To me scalpers are a nuisance/annoyance, and if Apple doesn't like to leave money on the table maybe they should come up with better ideas how to handle them. But even though its hard to get a hold of a unit for a few weeks, no Apple shortage has ever lasted so long that it soured me or anyone I know on upgrading to it or sticking with Apple for their products.
Possible Solution
One way Apple could take advantage of the extra money people are willing to pay for products on launch day is to institute a premium pre-order service. Rather than letting scalpers charge an extra fee, why not let people pay above retail to them?
For example, when pre-orders open they would be $200 above retail price for the first 12 hours, letting people who are willing to pay that much more get their units first. Then $100 above retail for the rest of the pre-order period, letting some people risk falling behind a little bit but still get it early.
Then at launch, the first week would have a $100 premium also and after 1 week on the market the public launch happens at regular retail price.
It wouldn't be misleading by Apple because it would publicly announced the price at which the unit goes on sale at the normal price, with simply that extra premium window to front load all the people who are willing to pay more than its worth to Apple.
I think this strategy would minimize scalpers by reducing demand for scalped units (since more people could pay the small premium to Apple direct and I am sure would prefer that route over paying someone on Craigslist or eBay where its more risky) and the premium would also reduce scalper's profit margins to where maybe it would no longer attract as many willing scalpers. And Apple wins because they earn even more than they normally would.
