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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.
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".

Top Rated Comments

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31 months ago

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
Rating: 188 Votes
31 months ago
Love it. Hope these scammers wasted scores of hours and cried in frustration.

Thank you Apple.
Rating: 104 Votes
31 months ago

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 :)
Rating: 100 Votes
31 months ago

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?
Rating: 78 Votes
31 months ago
GOOD. Shouldn't be allowed refunds either. Lessons must be learnt.
Rating: 63 Votes
31 months ago

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...
Rating: 61 Votes
31 months ago
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.
Rating: 56 Votes
31 months ago
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.
Rating: 56 Votes
31 months ago

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.
Rating: 44 Votes
31 months ago
personally I think scalpers lined up to sell back to Apple at cost Hilarious :cool:

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
Rating: 41 Votes

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