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Flood of returns...as resellers give up

A

acrafton

macrumors 6502
Original poster
Jan 18, 2006
268
3
Looks like there will be lots of returns as the numbnuts who camped out for an IPhone to resell it for "thousands of dollars" come to the realization that Apple pulled one over on them and that supply generally met demand. Interesting article in the Times:

http://www.nytimes.com/2007/07/06/technology/06iphone.html?_r=1&oref=slogin

Also, for kicks go out to Ebay and do a search on completed listings for IPhone. . .thousands of unsold IPhones with price ranges from $699 to $3000 (ha).

Too funny.. . .
 
Hahaha, I was laughing at that guy when he walked out of the store screaming iPhone for sale. I told him there was plenty to go around, and he said ... "Its just like real-estate" I am not 100% sure what they meant.

I also laughed at him because I said he was going to be the first to return it and cry when he realized he wasn't going to profit on it and he wasted his time.

Man, I love saying I told ya so.

Actually, upon further inspection it looks like they are talking about a guy at a different store. Funny how it started out showing a pic of the SF store.

Oh well, I still laugh at the guy cuz I know he didn't make money and returned it.
 
This pretty much sums it up.

24818BP~The-Simpsons-Nelson-Haha-Posters.jpg
 
As much as these stories of people not being able to profit from the iPhone personally amuse me, I wonder if Apple's determination to keep their initial supply numbers a secret was really a good thing in the long run.

Not knowing how many iPhones would be available meant people camping out several days in advance when they really didn't have to. On the one hand, it added fuel to the already blazing hype machine. Seeing those huge lines and the frenzy on opening night was quite a sight to see, and Apple certainly looked good that day.

On the other hand, now we have so many stories of people returning iPhones, and how they're not making a profit, and how no one will buy them. Yes, WE realize it's because it's greedy people trying to profit on the phone -- but to the average person it might look like the iPhone just isn't as "hot" as expected, and now nobody wants one. Add this to all the other articles talking about the phone's shortcomings, and I'm starting to wonder if maybe the hype was TOO much -- bringing everyone's expectations way too high, only to lead to greater disappointment. Certainly it's true that the MEDIA created most of the hype, but Apple didn't help much by keeping so much a secret either -- which just escalated the hype even further.

I'm probably worrying needlessly. Maybe it's true there's no such thing as bad publicity. I'm hoping the iPhone just gets more and more popular as the months and years go by. But there's still that little part of me that fears an iPhone backlash might occur...
 
I have think your point is interesting and have noodled on it myself but I think it won't hurt Apple for a few reasons:

1. They are available so why buy it from an Ebay/CL whore when you can walk into an Apple store and get one from them?
1.a No on likes the resellers for high $ and most are glad they got screwed.
2. Overwhelming coverage was great for Apple/IPhone as were the follow up articles on Apple meeting demand.
3. Generally glowing reviews.

Contrast this with the PS3 - not avail, coverage after/during the fact, humdrum reviews AND a more avail/cheaper competitor (Wii).
 
Rojo said:
I'm probably worrying needlessly. Maybe it's true there's no such thing as bad publicity. I'm hoping the iPhone just gets more and more popular as the months and years go by. But there's still that little part of me that fears an iPhone backlash might occur...
Click to expand...

I don't think it's a big deal. People understand the difference between scalpers and the dissatisfied.
 
Craigslist listings around here are going strong (Seattle). Had two I picked up, one for me and one for the gf, she didn't like mine, so I sold hers on Craigslist on Monday for 100 over retail.

Listed it at midnight on Sunday, by 6:00 am, people were calling saying they would take it.

I think there still is a demand locally when out, but ebay stumps me. Some have gone for 800, while others are at 650.
 
kellen said:
Craigslist listings around here are going strong (Seattle). Had two I picked up, one for me and one for the gf, she didn't like mine, so I sold hers on Craigslist on Monday for 100 over retail.

Listed it at midnight on Sunday, by 6:00 am, people were calling saying they would take it.

I think there still is a demand locally when out, but ebay stumps me. Some have gone for 800, while others are at 650.
Click to expand...

$100 over retail is not much. . .esp if you factor in sales tax (8% or $48 here) plus time in line and time to list, meet, transact, etc. . .not the get rich scheme many (not you) thought they would get.
 
Apparently none of these ebay get rich quick schemers never read the articles about Apple ordering about TWELVE MILLION iPhones.

As one poster previously pointed out somewhere on these boards... maybe they should have invested in Apple stock. They would have netted much bigger returns at a much smaller unit price.

Here's a clue... the next time you want to get rich quick on ebay, THINK about what you're buying... Apple wasn't planning on just making a handful and then telling the world "ok, that's it... no more iphones." The plan was to make more... what happens when more units flood the market? That's right... prices go down! Even the housing market isn't immune to this basic rule of economics (in the short term). The exception is if you plan to hold your collectible for a long time and let the value appreciate as the supply ostensibly diminishes... but that depends on the product category. I doubt anyone would pay you five bucks for a vintage DynaTac 8000 (which cost $4000 back in the day)... maybe they'll be worth something in, oh, two hundred years.

:rolleyes:

But here's another thought...

Just look at the difference between the courteous and kind people who lined up for hours, forming a communal, respectful atmosphere while waiting for the iPhone...

And then look at the people who beat each other down to get their hands on %!@#ing Beanie Babies, or Teddy Ruxpin, or those goddamned Cabbage Patch Dolls...

Contemplate the difference in culture there. One is a culture of collaboration and enthusiasm for technology, the other is a culture of consumption and greed.
 
And now we see the wisdom of a 10% restock fee. No way in hell anyone who didn't plan on keeping it would open it.

Now, all these unopened phones can be put right back on the shelf.
 
dagomike said:
And now we see the wisdom of a 10% restock fee. No way in hell anyone who didn't plan on keeping it would open it.

Now, all these unopened phones can be put right back on the shelf.
Click to expand...

The bigger wisdom was simply to cut down on people hording. I'm glad the returners are getting socked for $50, because it meant preventing a real customer from having one a few days earlier.
 
Restock

Those who bought them to sell will not get the $50 restock fee as they would not of opened them. The restock fee is only if it is open and not defective.

So the ebay people are really out nothing at all, just some time.

I see them on craigslist locally every day. Wether they are selling or not is another question.
 
My opinion is.... it won't hurt Apple.

As my late father used to say... "It doesn't matter if they are talking good or bad about you, as long as they are talking about you."
 
SteveM8 said:
I see them on craigslist locally every day. Wether they are selling or not is another question.
Click to expand...


I've always considered Craigslist to be a rather poor barometer of resale value;
one never knows whether items sell at listed price, get bartered down, or even
if they sell at all. Ebay's Completed Items listings are pretty spot-on for most items.
 
These people probably wish they didn't do that...

I was about 80th in line of 200+ and some guy and his wife came out with 6 phones... 6? They sold them another two for the baby?!

So I saw an article in the paper on the front page the next that covered the event at the same apple store I went to. Part of the article went like this:

"Baby = more phones

Though Apple limited iPhones to two a person, people found ways to get as many as possible. Simi valley residents James and Stacey Underwood waited in line at The Oaks mall along with their 6-month-old baby, Nolan. The couple paid James' two younger brothers and a friend $50 each to wait in line. The group bought 12 phones, including the two Nolan bought with cash."

cont'd

"The Underwoods planned to sell the phones on eBay for a fast $19,000 profit to pay off most of their credit card debt. James underwood said they might squeeze in showers first after a night of camping out for the phones.

'It was a lot of fun. We met great people,' Stacey Underwood said. 'Even if we make a little bit over what we paid for them, it was worth it.' "


I bet they're kicking themselves now.
 
restocking fee is only for opened iPhones.

the Ebayers are probably trying to sell sealed ones, so there won't be any penalty for them, except for the wasted time
 
Andrmgic said:
restocking fee is only for opened iPhones.

the Ebayers are probably trying to sell sealed ones, so there won't be any penalty for them, except for the wasted time
Click to expand...

It's only 14 days though. So if they wait too long then they'll have problems.
 
ndriver182 said:
cont'd

"The Underwoods planned to sell the phones on eBay for a fast $19,000 profit to pay off most of their credit card debt. James underwood said they might squeeze in showers first after a night of camping out for the phones.

'It was a lot of fun. We met great people,' Stacey Underwood said. 'Even if we make a little bit over what we paid for them, it was worth it.' "


I bet they're kicking themselves now.
Click to expand...

Those great people in line were only so great because they didn't know you were planning to horde phone from the crowd and try to make a profit.
 
Yeah, when the walked out of the store and were saying how they sold the baby two phones I got pretty irritated and didn't keep it to myself either. I think a lot of people were thinking what I was saying since nobody had any idea if we'd get ours or not. We did, but that's not the point. :D
 
i know a professional ebay seller that sold 6 iphones for $2000/each on june 29. all sales were legit, funds cleared from confirmed paypal accounts and were shipped that day. ebay pulled the listings after the buyers had paid so the seller didn't even have to pay any ebay listing or final value fees.
 
Check out the ad I just posted on Craigslist:

Attention iPhone speculators:

Edit: LOL - my Craigslist post got flagged for removal...Here's the pic I posted:

pwned.jpg


-and then I wrote how nice it will be to see iPhones selling for "rock bottom" prices
when the 14 day return privilege expires. Oh well, what do you expect from sore losers?
 
Not to get too far off-topic, but here are a couple more examples of Pwnage:

pwned.jpg


pwned.jpg
 
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