iPhone abundance frustrates eBay bonanza
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30 Jun 2007, Tom Sanders in California , V3
iPhone buyers hoping to make a quick buck by selling their devices at a profit on online marketplaces have largely come out drawing the short end of the stick.
More than 24 hours after the iPhone went on sale, Apple's website reported that numerous stores still have the phone in stock.
Most stores for AT&T, the phone's exclusive operator, have sold out of the 8GB models, but still have 4GB ones in stock.
Meanwhile, only 745 of 8,000 iPhone offerings on eBay have actually been sold. The sellers lucky enough to find a buyer fetched $962 on average, according to a report by Associated Press.
The 4GB iPhone retails at $499 and the 8GB model goes for $599.
More than 32 hours after the iPhone went on sale, most eBay auctions closed around the retail price, leaving the seller to pay for the sales tax and commission.
A $600 closing price carries about $25 in listing and closing fees. Sales taxes vary by county from zero to 8.65 per cent.
Apple started selling the iPhone in the US at 6pm local time on Friday. The company has not disclosed how many units it has sold, nor how many it has in stock.
In the hours before the actual launch, however, Apple employees assured buyers lining up outside the San Francisco Apple store: "We'll take care of you. "
The lack of information about the iPhone's supply caused many hopefuls to queue up outside stores for Apple and AT&T. Others offered to hold a spot in line at a fee.
Listings for the iPhone started appearing as soon as the device went on sale on the East Coast. Asking prices on Craigslist averaged $900 to $1,100. EBay prices also instantly shot up beyond the $900 level.
Buyers at the Apple store were allowed to purchase two iPhones. Stores for AT &T were limited to a single gadget.
Several people standing in line indicated that they intended to buy two iPhones and sell the second one in hopes of offsetting the purchase of their own device.
© Incisive Media Investments Limited 2010, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093
Do you agree?
Are we supposed to feel sorry for these bozos?
Apple has been clear all along that it would be in Apple and AT&T stores as well as available online. On Sunday, the Clarendon Virginia store still had bags and bags of them on the counter for anyone who walked in. Why would anyone pay a premium when they can purchase it online from Apple? With a goal of selling 10 million units in one or two years they know they have to keep it readily available. Ebay pirates should loose money.
Posted by Jim in DC, 02 Jul 2007
Great!
I am absolutely thrilled at this news. Not only do I know that if and when I am ready to purchase an iphone that I will indeed get one, but perhaps in addition to Apple's other industry shakeup innovations such as the touch screen, the industry will also be shaken up as the notion of camping out for the "must have" device goes out the window. Supply and demand, supply and demand.
Posted by shay, 01 Jul 2007
The long end of the stick
I stood in line for only in 4 hours at the Miami Apple store and had my girlfriend post the iPhone on Ebay when the doors opened. Made a $200 profit on it :P
Posted by iphone galore, 01 Jul 2007
Which end of the stick?
"The short end of the stick"? I didn't know sticks could have long and short ends. Either they got the WRONG end of the stick or they drew the short stick, or straw. It always amazes me when professional writers make such basic mistakes.
Posted by Darren McLean, 02 Jul 2007