2011年11月16日 星期三

IPad Trade-in Economy Explodes

If the burgeoningtrade-in activity for the original iPad is any indication, sales of theiPad 2 could exceed even the most brazen predictions.

Trade-in programs from Gazelle, eBay and NextWorth are all reporting sustained levels of user interest. Meanwhile, Apple is giving some recent iPad 1 buyers a $100 discount.

Trade-in Offers Draw Customers By the Thousands

Gazelle.com was one of the first "reCommerce" companies to advertise and promote its buyback rates for original iPad units. Higher than expected demand, coupled with Apple's decision to drop the price of original iPad units by $100, forced the company to adjust its rates just hours after the Apple keynote.

We spoke to Kristina Kennedy, who's in charge of branding and communications for Gazelle, about the first day trade-in figures and projections for the future. Kennedy told us that Gazelle saw more than 2,500 iPad trades on Wednesday paying out in excess of $1 million.

As of this afternoon, more than 1,000 trades have already cleared the site. Kennedy expected to see more than 2,000 trades for Thursday alone.

Historically, Kennedy says, trade-in volume has been an accurate projector of sales for an upcoming product. But the iPad has exceeded the company's expectations. When the iPhone 4 was announced in June, Gazelle saw around 1,200 trade-ins the first day. That included all iPhone models, from the original iPhone to the iPhone 3GS.

First day iPad trade-ins were nearly double that.

Robert Wesley, head of business development atNextWorth another company that offers electronics upgrades and trade-ins also reports record iPad activity.

In the last three days, NextWorth has seen almost three times the number of iPad units it received the entire month of February.

NextWorth has a retail partnership with Target stores in the U.S., where customers can receive credit towards a purchase or a pre-paid Target gift card when they trade-in used electronics in-store. iPad units will be accepted for trade-in at Target locations by the end of March.

Not to be outdone,eBay's Instant Sale program is also drawing significant interest from iPad owners. Since the Instant Sale program launched in October, eBay rep Annie Lescroart says, 22,000 iPads have been offered on the site. Some 7,100 were posted after the iPad 2 announcement.

So in less than 24 hours, eBay's Instant Sale program generated 1/3 of its total iPad offers.

For comparison, eBay provided us with metrics for other tablets. Since October, 1,500 offers have been made for non-iPad tablets. Only 58 of those came after Wednesday's announcement.

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