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".
Popular Stories
When introducing the new M4 iPad Pro models, Apple showed a video of a hydraulic press crushing all manner of creative tools, including musical instruments, electronic equipment, arcade games, paint and brushes, computers, cameras, and more, with the aim of demonstrating how the iPad represents all of the tools condensed into a single device. The ad was a play on the popular hydraulic press...
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
At its Spring Update event, OpenAI announced that it will be releasing a desktop app for the Mac, as seen in the screenshot below. The app will be rolling out to ChatGPT Plus subscribers starting today, ahead of a wider launch "in the coming weeks." "With a simple keyboard shortcut (Option + Space), you can instantly ask ChatGPT a question," OpenAI's press release says. In addition, Voice...
Apple today released iOS 17.5 and iPadOS 17.5, major updates to the iOS 17 and iPadOS 17 operating system updates that came out last September. The 17.5 updates come more than two months after the launch of iOS 17.4 and iPadOS 17.4. iOS 17.5 and iPadOS 17.5 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. In the European Union, ...
Apple today released tvOS 17.5, the fifth update update to the tvOS 17 operating system that came out last September. tvOS 17.5 comes two months after the release of tvOS 17.4. tvOS 17.5 can be downloaded using the Settings app on the Apple TV. Go to System > Software Update to get the new software. Apple TV owners who have automatic software updates activated will be upgraded to ...
Top Rated Comments
I feel really bad for you NOT
Thank you Apple.
Absolutely breaking my heart.
I weep for your plight...