If the burgeoning trade-in activity for the original iPad is any indication, sales of the iPad 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.
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 at NextWorth — 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.
According to both Gazelle and NextWorth, the cheapest iPad — the 16GB Wi-Fi model — is the most popular trade-in unit. Nearly 40% of iPad trades on Gazelle have been for the 16GB Wi-Fi unit. The next most popular unit, oddly enough, is the most expensive: the 64GB iPad 3G.Gazelle’s Kennedy believes the 16GB iPad (which originally retailed for $499) makes a particularly good upgrade target. Consumers have had a year with the unit and can now upgrade — not just to an iPad 2, but to one with a larger storage capacity.
As for the 64GB iPad 3G, the high buyback price on that unit is helping to shift sales. Trades for that unit are in the $500 range.
NextWorth is seeing similar data. The 16GB Wi-Fi iPad accounts for 29% of the company’s trade-ins in the last three days. The 64GB 3G iPad represents 23%. (eBay does not yet break down resales by model.)
Kennedy believes the market prices for the original iPad units have now stabilized. She expects pricing to remain consistent in the week leading up to the iPad 2′s March 11th pre-order date — and that some models may even see an uptick in value.After the 11th, she expects another dip in iPad market prices. Still, her advice — which is also the advice from NextWorth and eBay — is that consumers lock in their prices now before the 11th. That will give them time to get the new iPad while still holding on to the old one.
Of course, not all iPad owners are interested in trading in their units. In fact, some individuals just purchased an iPad. The good news is that consumers who purchased a unit from the Apple Store or Apple.com may be able to get a refund.According to CNET, Apple will also be offering customers who purchased an iPad in the two weeks leading up to the iPad 2 announcement a $100 refund. Apple’s standard return policy in the U.S. is 14-days for non-engraved units. Recent iPad buyers might just want to return the old unit outright and wait another week.
Customers who ordered an iPad online prior to the iPad 2 announcement need to call Apple to process the $100 refund. Retail customers just need to bring their receipt back to the Apple Store.
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 at NextWorth — 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.
Trading in for an Upgrade?
According to both Gazelle and NextWorth, the cheapest iPad — the 16GB Wi-Fi model — is the most popular trade-in unit. Nearly 40% of iPad trades on Gazelle have been for the 16GB Wi-Fi unit. The next most popular unit, oddly enough, is the most expensive: the 64GB iPad 3G.Gazelle’s Kennedy believes the 16GB iPad (which originally retailed for $499) makes a particularly good upgrade target. Consumers have had a year with the unit and can now upgrade — not just to an iPad 2, but to one with a larger storage capacity.
As for the 64GB iPad 3G, the high buyback price on that unit is helping to shift sales. Trades for that unit are in the $500 range.
NextWorth is seeing similar data. The 16GB Wi-Fi iPad accounts for 29% of the company’s trade-ins in the last three days. The 64GB 3G iPad represents 23%. (eBay does not yet break down resales by model.)
Market Prices Stabilized
Kennedy believes the market prices for the original iPad units have now stabilized. She expects pricing to remain consistent in the week leading up to the iPad 2′s March 11th pre-order date — and that some models may even see an uptick in value.After the 11th, she expects another dip in iPad market prices. Still, her advice — which is also the advice from NextWorth and eBay — is that consumers lock in their prices now before the 11th. That will give them time to get the new iPad while still holding on to the old one.
Apple Offers $100 Refunds to Recent Buyers
Of course, not all iPad owners are interested in trading in their units. In fact, some individuals just purchased an iPad. The good news is that consumers who purchased a unit from the Apple Store or Apple.com may be able to get a refund.According to CNET, Apple will also be offering customers who purchased an iPad in the two weeks leading up to the iPad 2 announcement a $100 refund. Apple’s standard return policy in the U.S. is 14-days for non-engraved units. Recent iPad buyers might just want to return the old unit outright and wait another week.
Customers who ordered an iPad online prior to the iPad 2 announcement need to call Apple to process the $100 refund. Retail customers just need to bring their receipt back to the Apple Store.
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