The iPad 2 will be on store shelves within days. Analysts expect many early adopters to take the leap from the original iPad to the new version. But what are those consumers going to do with their year-old tablets?
Gazelle predicts that five to 10 percent of consumer upgrades will involve a trade-in of the first-generation iPad. Indeed, as Gazelle sees it, consumers are catching on that their old electronics have value — but less than one percent resell them. Gazelle is betting that economic factors cause iPad owners to seek the resale market as they upgrade to the iPad 2.
“The dynamics of Apple’s iPad launch are perfect for recommerce,” said Israel Ganot, CEO of Gazelle. “Millions of first-generation iPad owners will want to upgrade, and by trading in their used tablet they can upgrade for half the cost. And they will feel good knowing that their used iPad’s life will be extended through reuse.”
No Dusty Drawers
When the iPad 2 was announced Wednesday, Apple set the lowest price for the Wi-Fi model at $499 and dropped the price of the original iPad to $399. That could send a rush of consumers after the first-generation iPad, but supplies are bound to run out quickly, said Michael Gartenberg, an analyst at Gartner.
“The kind of people who bought the first iPad are definitely what you would call early adopters. I expect a good deal of those folks are going to find some excuse to trade up,” Gartenberg said. “Typically, consumers who trade up will either sell their old device at somewhat of a discount or pass it on to friends or family. One thing you can say about the first-generation iPad is that it’s not going to end up in someone’s dusty drawer. It’s going to get used by someone somewhere.”
Where To Sell…