Resellers gain from delay in overseas iPad sales
By Jim Finkle |
April 16, 2010, Friday
|
Print Edition
Print Edition
APPLE Inc's decision to delay the sale of its iPad overseas may frustrate customers in Germany, France or Japan - but it brightened the day of at least a few crafty fans closer to home.
So-called resellers, opportunists who scoop up hot products and sell them over the Web at inflated prices, have recently been charging premiums of more than US$500 on sites like Craigslist or eBay for the iPad.
They could soon jack up prices even more, thanks to Apple's announcement on Wednesday that iPads will not go on sale outside the United States before late May. Until then, shoppers in Europe, Asia and the Middle East who can't wait for the touchscreen device to arrive in local stores will have little choice but to pay up over the Web.
"There is huge demand. I'm buying as many as I can," said Todd Davis, owner of ToddsToyz.com, a Boston-based Web retailer that ships consumer electronics globally.
The firm charges US$100 to US$150 over list price for the devices, though some retailers on eBay were asking for US$1,200 or more for a high-end model that Apple sells for US$699.
Davis said he had only been able to get his hands on five units before they sold out.
British online retailer PurelyGadgets.co.uk was selling tablets for 590 pounds (US$914) to 790 pounds, a hefty premium over their original price of US$499 to US$699. A salesman said they were almost sold out.
Apple has yet to announce overseas pricing. In the meantime, market forces will determine how much consumers pay, said Steve Baker, an analyst with market research firm NPD.
"Gray markets are the purest form of supply and demand," he said.
If you crimp the supply and demand doesn't go down, then prices will go up," Baker said.
So-called resellers, opportunists who scoop up hot products and sell them over the Web at inflated prices, have recently been charging premiums of more than US$500 on sites like Craigslist or eBay for the iPad.
They could soon jack up prices even more, thanks to Apple's announcement on Wednesday that iPads will not go on sale outside the United States before late May. Until then, shoppers in Europe, Asia and the Middle East who can't wait for the touchscreen device to arrive in local stores will have little choice but to pay up over the Web.
"There is huge demand. I'm buying as many as I can," said Todd Davis, owner of ToddsToyz.com, a Boston-based Web retailer that ships consumer electronics globally.
The firm charges US$100 to US$150 over list price for the devices, though some retailers on eBay were asking for US$1,200 or more for a high-end model that Apple sells for US$699.
Davis said he had only been able to get his hands on five units before they sold out.
British online retailer PurelyGadgets.co.uk was selling tablets for 590 pounds (US$914) to 790 pounds, a hefty premium over their original price of US$499 to US$699. A salesman said they were almost sold out.
Apple has yet to announce overseas pricing. In the meantime, market forces will determine how much consumers pay, said Steve Baker, an analyst with market research firm NPD.
"Gray markets are the purest form of supply and demand," he said.
If you crimp the supply and demand doesn't go down, then prices will go up," Baker said.
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