What happens to returns?

[chicagdan]

For a variety of reasons, it sounds like there are a ton of iPhone returns, especially the 4 gig models. I wonder what the Apple policy will be for re-selling the returns ... what's the normal markdown for refurb or refresh Apple products?

 

[rdowns]

No one knows what they will sell these for when they show up in the refurb section of the store. I'd guess they will sell for $100 less than new ones.

 

[bbplayer5]

They will be at most 30 dollars less.

 

[bostonte]

simple. The returns will be used to fulfill the promised free phone for full time employees. Thus no need to introduce a lower price point into the market.

Sorry, couldn't resist. They'll eventually show up as returns. Though almost definately held back for at least a few months. The online refurb prices are no usually that good. Every few months my local Apple store has a "refurb" table with prices that are far lower - the products move without as much publicity of the lower price as when published online.

Traditionally cell carriers have used refurbs as repair replacements. Another need/use for them.

 

[chicagdan]

Traditionally cell carriers have used refurbs as repair replacements. Another need/use for them.

That's a really good point ... I'm pretty sure Apple does the same for iPod repairs. So it's likely to be awhile before they show up ... although I'm guessing that there will be an unusually high number of returns of this product due to activation issues, 4G switches and buyer's remorse. Online polls are, of course, ridiculously inaccurate, but I saw one today that showed 40 percent of iPhone buyers returning theirs. Even if it's only 4 percent, that's 40,000 returns nationwide, a pretty substantial cache of phones.