Apple rumored to be secretly shipping 'iPad 3' as Best Buy cuts iPad 2 by $50

Posted:
in iPad edited January 2014


As retailer Best Buy has begun offering $50 off every iPad 2 model, a purported shipping manifest suggests Foxconn is already preparing to ship the device's third-generation successor to Apple in the United States.



The alleged secret shipments from Foxconn were revealed in a shipping manifest from Apple.pro revealed this weekend, which shows a series of shipments scheduled to begin delivery in the U.S. no later than March 9. The mystery orders arriving from Chengdu, China, are said to be under high security.



Originally surfacing on a Chinese microblogging site, the purported shipping manifest is said to be from major international cargo charter flights originating from Chengdu International Airport. A source from Foxconn's Chengdu plant reportedly indicated that the shipment is for "Apple's latest products."



The shipments could imply that Apple is preparing for near-immediate availability of its third-generation iPad. That device is expected to be officially unveiled at a media event on March 7.



For comparison, last year Apple announced the iPad to on March 2, and the device became publicly available in the U.S. just over a week later on March 11. The international launch of the iPad 2 came a few weeks later on March 25, expanding to 25 additional countries.





Purported 'iPad 3' case and comparison photos. | Source: Apple Daily







With an anticipated iPad unveiling just over a week away, retailer Best Buy on Sunday began offering $50 off all iPad models. Customers can now obtain an iPad 2 at a starting price of $449.99 for the Wi-Fi-only 16-gigabyte model, while even the high-end 64-gigabyte 3G-enabled model has a $50 discount, bringing it to $779.99.



Best Buy's iPad 2 sale comes soon after Meijer, a regional big-box retailer in the U.S., slashed the price of the 16GB iPad 2 with Wi-Fi by $70. Retailers are believed to be clearing out inventory of the current iPad in anticipation of a new model debuting soon.



[ View article on AppleInsider ]

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Comments

  • suddenly newtonsuddenly newton Posts: 13,034member
    The Chinese aim to spoil all of Apple's surprises
  • eric475eric475 Posts: 177member
    The iPad profit margins for retailers must be higher than $50 and even $70. Or is that a wrong assumption?
  • chris_cachris_ca Posts: 2,517member
    Quote:
    Originally Posted by eric475 View Post


    The iPad profit margins for retailers must be higher than $50 and even $70. Or is that a wrong assumption?



    Apple could have simply dropped the wholesale price by that much.
  • hittrj01hittrj01 Posts: 732member
    Quote:
    Originally Posted by eric475 View Post


    The iPad profit margins for retailers must be higher than $50 and even $70. Or is that a wrong assumption?



    On an iPad, it might be close to those numbers, but that is a wrong assumption when it comes to most of the "big" things. Laptops, retailers typically lose a few dollars, trying to make them up on the warranties and services. TV's are the same.
  • cycomikocycomiko Posts: 716member
    Retail margin on ipods was around 5% here, at least on the midrange touches. Its possible that the margins are higher on the ipad, but considering apples profit , I dont think so.
  • cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by eric475 View Post


    The iPad profit margins for retailers must be higher than $50 and even $70. Or is that a wrong assumption?



    Could be. Or it could be that Apple allows them to sell a lot of product for 12 months at lower profit margins than that with the warning that when the new one comes out, Apple is not responsible for making them whole. IE, they buy the product from Apple for, say $479 and sell it if they can, and if they can't, they are stuck with it. Given how popular the iPad is, I don't know if I'd say that's impossible, though I imagine most electronics are not resold in this way. But most electronics makers do not have a full price retail store of their own so they can't dictate terms like Apple can.



    I'm sure BB expects to make its big profits selling protective cases, headphones, stands and the like. So the iPad is a loss leader.
  • gatorguygatorguy Posts: 14,322member
    There were claims a couple weeks ago (at least) that the third-gen iPad would be available to buy almost immediately after it's announced. This really isn't new as far as rumors go.
  • solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by Gatorguy View Post


    There were claims a couple weeks ago (at least) that the third-gen iPad would be available to buy almost immediately after it's announced. This really isn't new as far as rumors go.



    Those are just rumours which probably started as guesses.



    The iPhone 4S was announced and demoed on day 0, then pre-orders started on Day 3 with delivery and in store sales on day 10, with many getting deliveries on day 8 and 9. From that I think it's not crazy to expect a similar release cycle.
  • ssquirrelssquirrel Posts: 1,196member
    Yeah Announcement mid-week, pre-order Friday, in store Friday would be nice and keeping w/recent history. If they announce on the 7th and start pre-orders that day, they wouldn't be able to get them to people by that Friday, unless they are already storing a bunch around the country by the announcement day.
  • macky the mackymacky the macky Posts: 4,615member
    Quote:
    Originally Posted by eric475 View Post


    The iPad profit margins for retailers must be higher than $50 and even $70. Or is that a wrong assumption?



    It is a wrong assumption. Sometimes when a new product is released, the manufacturer will rebate an amount of the purchase price to the stores, of stock less then 30 days old. This encourages the stores to keep some inventory even in the face of rumored new product. This "rebate" is not a certainty, nor is the amount all that certain, and it usually comes AFTER the new product is announced. So, if any company is offering a discount now, it is betting on the rebate to some extent.



    So, while the store may be selling the current inventory below their current cost, they may be doing so with an expectation of some money flowing back to them from Apple.



    If, for example, Apple is planning on offering the current iPad2 at $100 less then the current price, this practice of offering $50 to $70 off the old inventory will ease the pain somewhat for purchasers this close to the iPad3 announcement who may be looking for a deal on iPad2s.
  • prof. peabodyprof. peabody Posts: 2,860member
    Quote:
    Originally Posted by Suddenly Newton View Post


    The Chinese aim to spoil all of Apple's surprises



    It's funny how they can keep a lid on Democracy and freedom without batting an eye, but they fail to contain industrial espionage.



    Sure shows where the priorities of the country are.
  • gtrgtr Posts: 3,165member
    Quote:
    Originally Posted by SolipsismX View Post


    Those are just rumours which probably started as guesses.



    The iPhone 4S was announced and demoed on day 0, then pre-orders started on Day 3 with delivery and in store sales on day 10, with many getting deliveries on day 8 and 9. From that I think it's not crazy to expect a similar release cycle.



    You are correct in regards to history.



    However, me thinks that Apple may be changing the way that they do things in the future. Many different things.



    Imagine the end of the iPad 3 announcement:



    "...and that, is iPad 3.

    So when can you buy this?

    Today.

    Right now.

    In the foyer on your way out.

    I'd like to thank you all for coming."




    Collective gasp, then...



    Wild. Fucking. Stampede.



    (Of course, I could be wrong )
  • gtrgtr Posts: 3,165member
    Quote:
    Originally Posted by Prof. Peabody View Post


    It's funny how they can keep a lid on Democracy and freedom without batting an eye, but they fail to contain industrial espionage.



    Sure shows where the priorities of the country are.



    Unfortunately, industry is not allowed certain privileges that governments have.



    I could tell you what they are, but then I'd have to kill you.
  • solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by GTR View Post


    You are correct in regards to history.



    However, me thinks that Apple may be changing the way that they do things in the future. Many different things.



    Imagine the end of the iPad 3 announcement:



    "...and that is the iPad 3.

    So when can you buy this?

    Today.

    Right now.

    In the foyer on your way out.

    I'd like to thank you all for coming."




    Collective gasp, then...



    Wild. Fucking. Stampede.



    (Of course, I could be wrong )



    You're appealing to my desire which makes it hard to disagree. I hope you are right but I have to think a more staggered release is better. It gives Apple some breathing room, prevents someone in one of their stores or affiliates would spill the beans before the announcement as the boxes would have to be in the stores the night before, and they also can dominate the tech news with multiple days of iPad released media, not just one major day.
  • charlitunacharlituna Posts: 7,068member
    Quote:
    Originally Posted by cameronj View Post


    Could be. Or it could be that Apple allows them to sell a lot of product for 12 months at lower profit margins than that with the warning that when the new one comes out, Apple is not responsible for making them whole. IE, they buy the product from Apple for, say $479 and sell it if they can, and if they can't, they are stuck with it. .



    I suspect that this is the case. I also suspect that the third party retailers are no more forewarned of release dates than the public is and they fear that the rumors are true and are trying to purge their stocks, even if at 'cost' to avoid having to lose money after an announcement to get rid of units



    As for the 'secret' shipments, I don't recall Apple making a habit of announcing shipments, especially prior to a launch announcement. For security reasons. So are these really 'secret' at all or just the same as always and not put out into the world to be stolen in route. That is if the documents aren't simply totally fake. consider if they were real how pissed off Apple would be over the leaks. Who is crazy enough to risk the wrath of such a prominent company
  • apple ][apple ][ Posts: 7,823member
    They're using UPS?



    I hope that they're not as incompetent as the UPS people who deliver packages in my area. They don't even bother to ring the bell half of the time, they'll just leave your shit unattended in the lobby of a building.
  • macky the mackymacky the macky Posts: 4,615member
    Quote:
    Originally Posted by Apple ][ View Post


    They're using UPS?



    I hope that they're not as incompetent as the UPS people who deliver packages in my area. They don't even bother to ring the bell half of the time, they'll just leave your shit unattended in the lobby of a building.



    .. or drop-kicking it from the sidewalk to your door. The post office prefers the overhand toss, while FedX place-kicks it from the floor of the van.
  • suddenly newtonsuddenly newton Posts: 13,034member
    Quote:
    Originally Posted by Apple ][ View Post


    They're using UPS?



    I hope that they're not as incompetent as the UPS people who deliver packages in my area. They don't even bother to ring the bell half of the time, they'll just leave your shit unattended in the lobby of a building.



    Apple uses UPS for shipments to Apple Stores, but FedEx to ship to customers. B2B shipments are treated at lot more professionally by UPS, for the simple reason that lost or delayed shipments to restock inventory can permanently lose their account with Apple. AS IT SHOULD BE.
  • hittrj01hittrj01 Posts: 732member
    Quote:
    Originally Posted by Apple ][ View Post


    They're using UPS?



    I hope that they're not as incompetent as the UPS people who deliver packages in my area. They don't even bother to ring the bell half of the time, they'll just leave your shit unattended in the lobby of a building.



    The fact that Amazon ships UPS while the Apple online store ships FedEx is the main reason i ALWAYS buy from Amazon if I can. I must be lucky, the UPS guys in my area always beat the estimated times by at least a couple of hours, always ring the bell, never leave something that needs a signature. OTOH, the FedEx guys here have, on three separate occasions, failed to deliver my packages, fail to leave a note of attempted delivery, and then the office fails to call me about my packages. I have had to call FedEx to see what was going on, when they've been sitting in the offices for the past 2 days!
  • cash907cash907 Posts: 893member
    ... or you could just wait until after the 3 is released. If they repeat last year's sale, you'll be able to pick up a 64gb model for 349 from AT&T a few days after the latest model is released.
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