Scalpers force Apple to require reservations for iPhone buyers
Apple is attempting to block scalpers by instituting new restrictions preventing walk-in sales of the iPhone at Apple Stores in China. Customers must first reserve an iPhone on Apple's website before visiting an Apple Retail Store to complete the purchase.
The new policies, which were posted on the Apple China site (Google Translation), require customers to make an online booking for the iPhone 4 and iPhone 3GS and schedule a day and time to pick it up.
According to MIC Gadget, the name on the customer's ID must exactly match the name on the purchase order when the iPhone is picked up. Each customer is allowed only one iPhone purchase per day.
Scalpers in Beijing and Shanghai have been taking advantage of the limited supply of the iPhone 4 by selling stacks of marked-up iPhones outside Apple retail stores. At one point, customers had become so fed up with the scalpers, who wait in line to snatch up new shipments of the smartphone as quickly as possible, that a fight broke out at a Beijing Apple Store. Apple security and local police had to close the store in order to defuse the situation.
Despite the iPhone 4 being available on China's grey market since shortly after the U.S. launch in June, Chinese demand for the iPhone 4 has been stronger than expected. Thousands of buyers lined up outside Apple's 4 retail stores in China to buy the iPhone 4 on launch day, Sept. 25.
It may take more than a month for Apple to catch up to heavy demand for the iPhone 4 in China. China Unicom received over 200,000 pre-orders before the release of the handset, but the carrier was only able to fulfill half of the orders in the first few days of availability. China's second-largest carrier warned that some customers who pre-ordered the device might have to wait until late October to receive the device.
Even as Apple enjoys increased interest in the iPhone 4 through its partnership with China Unicom, the Cupertino, Calif., company could be looking to expand to other carriers in China. Analysts speculated earlier this week that China Telecom is in negotiations with Apple over a CDMA iPhone that could be released in early 2011.
China Mobile, the world's largest cellular provider with over 570 million subscribers, reached out to Apple earlier this year to request an iPhone compatible with the carrier's proprietary TD-SCDMA 3G standard.
The new policies, which were posted on the Apple China site (Google Translation), require customers to make an online booking for the iPhone 4 and iPhone 3GS and schedule a day and time to pick it up.
According to MIC Gadget, the name on the customer's ID must exactly match the name on the purchase order when the iPhone is picked up. Each customer is allowed only one iPhone purchase per day.
Scalpers in Beijing and Shanghai have been taking advantage of the limited supply of the iPhone 4 by selling stacks of marked-up iPhones outside Apple retail stores. At one point, customers had become so fed up with the scalpers, who wait in line to snatch up new shipments of the smartphone as quickly as possible, that a fight broke out at a Beijing Apple Store. Apple security and local police had to close the store in order to defuse the situation.
Despite the iPhone 4 being available on China's grey market since shortly after the U.S. launch in June, Chinese demand for the iPhone 4 has been stronger than expected. Thousands of buyers lined up outside Apple's 4 retail stores in China to buy the iPhone 4 on launch day, Sept. 25.
It may take more than a month for Apple to catch up to heavy demand for the iPhone 4 in China. China Unicom received over 200,000 pre-orders before the release of the handset, but the carrier was only able to fulfill half of the orders in the first few days of availability. China's second-largest carrier warned that some customers who pre-ordered the device might have to wait until late October to receive the device.
Even as Apple enjoys increased interest in the iPhone 4 through its partnership with China Unicom, the Cupertino, Calif., company could be looking to expand to other carriers in China. Analysts speculated earlier this week that China Telecom is in negotiations with Apple over a CDMA iPhone that could be released in early 2011.
China Mobile, the world's largest cellular provider with over 570 million subscribers, reached out to Apple earlier this year to request an iPhone compatible with the carrier's proprietary TD-SCDMA 3G standard.
Comments
China Mobile is over 570M now. They are adding about 5.5M per month.
K, thanks. China Mobile hasn't put up the September numbers on their site yet. Their August numbers are 564M, so I rounded to 550M with an "over." I've changed it to 570M.
K, thanks. China Mobile hasn't put up the September numbers on their site yet. Their August numbers are 564M, so I rounded to 550M with an "over." I've changed it to 570M.
I hate when people nitpick over the trivial aspects of an article. I was being that guy. My apologies for being a pedantic arse.
What would be the royalties that Apple would have to pay for TD-SCDMA iPhones? Anything to Nokia, QCOM?
I can’t say if their are no royalties but they would certainly be less than going with W-CDMA.
I hate when people nitpick over the trivial aspects of an article. I was being that guy. My apologies for being a pedantic arse.
No worries. Yours is technically more accurate. I appreciate the feedback.
Large cooperations are trying to stop this with a legal blockade. Patent infringement. Apple is getting scary to the big players.
Go figure... you make a good product... people want it. I for one am so sick of getting plastic garbage tossed my way with the price tag of a supremely engineered product.
I'm just curious... is there another mfg. out there that can't produce enough for the demand of their product?
Welcome to the forum.
It?s quite common, although Apple?s supply and demand issues do seem to last considerably longer.
Large cooperations are trying to stop this with a legal blockade. Patent infringement. Apple is getting scary to the big players.
Go figure... you make a good product... people want it. I for one am so sick of getting plastic garbage tossed my way with the price tag of a supremely engineered product.
I think Apple has been scary to them for a long time. They are the largest tech company in the world by marketshare at $269 Billion with Microsoft being $56 Billion below that at number 2. On top of that, Apple is very likely to best MS as having the highest revenue per quarter for a tech company with highest profit likely coming within a handful quarters if trends continue. It?s also likely some company we?ve never heard of will trounce Apple in our lifetime, too.
I'm just curious... is there another mfg. out there that can't produce enough for the demand of their product?
.
It took me longer to find a Nintendo Wii than it did to get an iPhone 4. I was lucky enough to go to a store that got in 41 the day before. It took me weeks before I was able to snag a Wii.
It took me longer to find a Nintendo Wii than it did to get an iPhone 4. I was lucky enough to go to a store that got in 41 the day before. It took me weeks before I was able to snag a Wii.
It took me 6 months. I wasn’t very active trying to get one but I was looking and asking whenever I was in a store that would sell them. I happen to be in a Wal-Mart buying supplies for a 6 month trip to India and found one. I bought it, used it for 2 days before my trip, then gave to my brother to use with the understanding that he had to give it back in good condition when i get back.
I think Apple has been scary to them for a long time. They are the largest tech company in the world by marketshare at $269 Billion with Microsoft being $56 Billion below that at number 2. On top of that, Apple is very likely to best MS as having the highest revenue per quarter for a tech company with highest profit likely coming within a handful quarters if trends continue. It?s also likely some company we?ve never heard of will trounce Apple in our lifetime, too.[/QUOTE]
[QUOTE=solipsism;1729616]Welcome to the forum.
Thanks for the welcome. How do you "quote"?
I've been reading this site for months. Ever since I googled the 2nd gen Ipad.
Please learn some economics. This post could just as easily (and more accurately) be titled "Apple/Carrier's low prices and subsidies force Apple to require reservations for iPhone buyers."
Move along, folks--this is not news. When price is artificially below demand price, people WILL find ways to pay and receive that surplus. In short, transactions will always happen at the actual price, whether that is paid in time, difficulty, or whatever.
I'm just curious... is there another mfg. out there that can't produce enough for the demand of their product?
Large cooperations are trying to stop this with a legal blockade. Patent infringement. Apple is getting scary to the big players.
Go figure... you make a good product... people want it. I for one am so sick of getting plastic garbage tossed my way with the price tag of a supremely engineered product.
Funny, people are always telling me how they like this phone cause it's easy to pull the battery if you need to reset it or this laptop cause it's easy to replace the parts. Get a clue, if they engineered it so pulling the battery is easier or swapping parts is easier it means they expect you to have to do that a lot!
Wonder if the iPhones will come with the new Nobel app.
you meant the bomb app.? Nobel made fame on his secrete formula to make bomb that can kill...
Welcome to the forum.
Thanks for the welcome. How do you "quote"?
I've been reading this site for months. Ever since I googled the 2nd gen Ipad.
In the right lower corner of each post you can find a reply link. It automatically transforms the post into a quote.
I'm just curious... is there another mfg. out there that can't produce enough for the demand of their product?
Large cooperations are trying to stop this with a legal blockade. Patent infringement. Apple is getting scary to the big players.
Go figure... you make a good product... people want it. I for one am so sick of getting plastic garbage tossed my way with the price tag of a supremely engineered product.
Dear Sir,
Please learn some economics. This post could just as easily (and more accurately) be titled "Apple/Carrier's low prices and subsidies force Apple to require reservations for iPhone buyers."
Move along, folks--this is not news. When price is artificially below demand price, people WILL find ways to pay and receive that surplus. In short, transactions will always happen at the actual price, whether that is paid in time, difficulty, or whatever.
Umm... OnlyShawn, I don't think you're right. It's not the price. Global demand, for a multitude of reasons, including it is a highly desirable product, contribute to the iPhone's success. The UK did a few hundred thousand pre-orders before the server crashed when they launched the iPhone 3G. We're talking iPhone 4, in China, with Asian society highly concerned about status... Only 200k phones is far, far too little for China even if the price was marked up 30% or more - why do you think the scalpers are so successful?
you meant the bomb app.? Nobel made fame on his secrete formula to make bomb that can kill...
Nobel invented Dynamite for mining, others used it for bombs.
what does that mean?
The Nobel Peace prize..do you read any news?
The Nobel Peace prize..do you read any news?
Just AppleInsider. This is a news site, right?