MacRumors published an interesting story yesterday regarding Apple’s 5th Avenue retail location seeing a large number of third-generation iPad returns by Chinese resellers.

It appears that Apple’s ability to keep up with consumer demand this year has diminished the tablet’s resale value, prompting a high volume of returns by would-be vendors…

The site received the following note from a reader:

“Went to the Fifth Ave store near midnight today, and saw that Apple was setting up a separate line just to handle the volume of iPad returns from Chinese resellers. The manager kept the separate line to ensure that regular customer’s experience wasn’t affected. Some people were returning up to 30.”

A quick search on eBay for third-generation iPads paints a similar picture. The site is currently running auctions on just over 2,000 current-gen Apple tablets โ€” all priced just above or at retail value.

In the past, reselling iPads has proven to be a fairly lucrative business. But considering that there has been no real sign of supply shortages this time around, it’s understandable that folks are seeing smaller ROI’s (return on investment).

Guess it’s a good thing Apple has a 14 day return policy.

The real question here is how much will these returns affect Apple’s bottom line? The company announced last week that it sold over three million iPads during launch weekend, and is expected to sell more than 15 million for the quarter.

  • these scammers shouldn’t be allowed to return the product. their sole intention was to gouge the public. i hate scalpers..they are the dregs of society. they screwed themselves and now they should have to deal with the repercussions of their actions/choices. a return policy should be ONLY for a normal customer. a normal customer buys ONE or maybe 2 but come on.

    • Anonymous

      If you’re going to have an angry rant then can you at least use capitalization ffs, there’s a reason your keyboard has a caps lock key.

      You do make me laugh though, “their sole intention was to gouge the public” … Lol why does it bother you so much, there’s a simple solution to this, don’t fucking buy one from one of these “scalpers” .. Why cry about it when the fact is that it probably doesn’t even affect you, some people just like to moan about anything and everything !!

      • i think what he meant was that, these scammers buy whole lot of iPads so that there is a shortage in a market and people pay a premium to buy the device…hence we end up paying more than the retail price while these idiots gain a healthy profit…

      • Anonymous

        these people, make lines longer, hog the merchandise and simply annoy everyone that is actually there to get an iPad for them or as a gift…they come in and out of the line, “save a space” in the line for many people and think the apple store is a chinatown market..i have seen apple employees keep very strict rules about them…kicking those that try to sneak in and don’t wait in line and just show up 5 minutes before their friend who is in the line is about to go in..

        well now at least they wasted their time, delay access to their money and hopefully will not be inline for the next product launch

      • Anonymous

        spoken like a scalper ๐Ÿ˜‰

        just bustin your balls, but I think we can all agree that scalpers/scammers suck.

        **capatilization intentionally left out.

      • It affects everyone since we have to wait longer for our iPads to be delivered. As those scalpers buy big quantities which creates a shortage in the supply lines.

      • Anonymous

        shortage in the supply lines?.. wait, i’ll just read the article again..

      • i was lazy and didn’t use the caps key and you were lazy and abbreviated. get over it. you seem to be one of those “some people just like to moan about anything and everything.”

        seriously…if my laziness in typing is going to be your focus and a point for you to whine and bitch about then dude…you lose your entire argument. you are dismissed.

  • Not surprised..I was actually expecting an article like this to be posted sometime soon.

  • I agree with Matthew, people should by 1 to 4 iPads for the whole family but 30? That shouldn’t be allowed. Without some kind of authorized license

  • Haha idiots.

  • Hi. Where can I download the official iDownloadBlog app? I tried to find in App Store but its not there. Can anyone put a link to where i can download it? Or guide me? Thanks.

    • it’s on cydia…search there…:)

    • Damani Brown

      Navigate to the site on your iPhone. And Bookmark it as “Add to homescreen” and there you go. You will have the app.

      • I search on cydia and i find one but its a fan made one. I prefer the offciicial one ๐Ÿ™‚

        I already add it to my homescreen but its not good. If you know what i mean.

      • Where is it i cant find it :/
        Even tho u say its bad i wanna try it

    • Anonymous

      They’ve been promising an official app for the past 100 years. Don’t get your hopes up.

      • No, we haven’t been promising an official app for 100 hundred years. We have said that an app is something we will consider doing at some point. The iDB web app is solid enough that we don’t want to rush to create an app. We have more important things to do with our money right now, like making the site faster, safer, etc.

      • Anonymous

        Of course not, it’s hyperbole my friend. Just looking forward to it and sometimes my anticipation comes off as snarky and sarcastic. You guys keep up the good work, nothing but love for iDB!

  • Anonymous

    when i was waiting for the 4s i was feeling in chinatown…some had their whole families waiting in line to buy the iPhone and some were even trying to get in the line…apple people kick many out as it was unfair for the rest of their customers…the same thing with iPads, but with so many units available and a well controlled flow apple is killing their business…serves them right.

  • Apple haven’t just kept up with demands. There just hasn’t been as much of a demand for the new ipad.

    • Anonymous

      Of course there has been no demand for it. Who uses an improved IPAD camera and yet again, Siri, as the main marketing point of a product?

      Im pretty sure Apple thinks people love Siri way more than they ACTUALLY do. Yes, sure, the Retina display looks beautiful, but still, the iPad’s price aint no walk in the park.

      • Um… It’s pretty clear you don’t have an iPad because Siri isn’t on the new iPad, only the voice Dictation part of Siri is. The new iPad also features quad-core graphics, which have dramatically improved the quality of everything you see on the display (also partly thanks to the Retina Display), you have 1080p video recording, better still shots using the 5MP camera and the battery is better than most other tablets on the market.

        I see you also mention the iPad’s price, however, considering that the base model of the new iPad costs $500 / ยฃ400 / โ‚ฌ479, the iPad is either the same or around the same price as Motorola XOOM 2 and Samsung Galaxy Tab 10.1, therefore all of your points are invalid.

      • You have no clue what your talking about….Apple has just done a better keeping up with the demand. Apple sold 3 million iPad 3’s in 4 days. With the release of te original iPad it sold 1 million units in 28 days…..so I would say Apple Finally got smart and made a crap on of these to keep up with te demand. And yes there is a demand!

      • Im basing my comment on my experience selling ipads. Our store got the same amount it did for the ipad 2 yet sold less units. same goes for a lot of retailers here. Apple obviously base their sales on what they sell to retailers as well, not just what they sell from their stores. that doesnt mean the retailers have sold them to customers…

        @mathew scott. ive only seen the demo unit with what software was supplied on it and they really havent given it anything to show off the new display. most customers cant tell the difference. would like to see infinity blade and the difference there in person.

  • Anonymous

    its called capitalism… welcome to it.. it is your new god

  • The only way it’s going to effect the bottom line is if they end up with a copious amount of extra iPads lying around. I’m glad they anticipated such a high volume for launch but now that they have seen the demand they should start making adjustments to meet the demand for the next year. If there isn’t much demand then jus slow down on production. If all is managed correctly then they shouldn’t have a problem. Is simple supply and demand management.

  • That’s not unexpected. People that don’t return it are either spoilt children or have more money than sense.

  • Anonymous

    This are NOT resellers.
    This people just don’t like heating, bad wi-fi, absence of SD port, heaviness, almost no use of the high resolution , 8h charging time, no international 4g support………. .
    And this article is menial backing Apple.

  • Anonymous

    people are returning the ipads because the screens suck. White web pages look red or yellow

    • not sure what screen you are looking at my my ipad doesn’t have a red or yellow screen. maybe you have a bit of jaundice? perhaps those yellow eyes are making your imaginary screen look yellow.

  • Winski

    So let’s see…. We’re suppose to give a crap about a lame group of Chinese scalp artists that think the market is trying to squeeze them out? HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA …….

    Next stop for you clowns is the library for a refresher in capitalism….

  • Winski

    So let’s see…. We’re suppose to give a crap about a lame group of Chinese scalp artists that think the market is trying to squeeze them out? HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA …….

    Next stop for you clowns is the library for a refresher in capitalism….

  • Anonymous

    My girlfriend returned my new iPad because even when the damn thing is plugged into the wall, it won’t charge the battery. And even when the battery drains down to 1%, the iPad shuts off to recharge. Again, with the effing thing plugged into the wall.
    The manager at my local Apple store quietly accepted the new iPad back with a full refund to my girlfriend. And she bought it on march the 16th and she sent it back on April the 7th.
    Dude, Apple is keeping this sh** quiet.
    I bet a class action lawsuit is underway. Watch for it!!!!