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iPad fever: cashing in to trade up

Tuesday, March 06, 2012 - 02:21

March 6 - Anticipating the unveiling of Apple’s iPad 3, owners of current models are ready to trade up and are cashing in current tablets on websites like Gazelle and retail outlets such as Tekserve in New York City. Bobbi Rebell reports.

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New York City lawyer George Bischof loves gadgets, always looking to get his hands on the next big thing. He is well aware Apple is expected to unveil a new iPad, and recently sold his old one - taking in $210. He bought it for $699. SOUNDBITE: GEORGE BISCHOF, ATTORNEY/IPAD SELLER (ENGLISH) SAYING: "The economics is just moving to be more like the car market right; a used car has value, you don't want to do nothing with it. So an older device is having more residual value and it's getting easier to deal with those." He sold it on a site called Gazelle. Chief Gadget Officer Anthony Scarsella: SOUNDBITE: ANTHONY SCARSELLA, CHIEF GADGET OFFICER, GAZELLE (ENGLISH) SAYING: "Since the invitation last week, last Tuesday, we have seen about an 800% increase just in iPad trades alone. Also we've made about 150,000 offers on iPads to Gazelle customers; people looking to trade in and get ready for the iPad 3." The market potential is huge- Apple has sold about 55 million iPads since it was introduced in 2010. At Tekserve, an Apple dealer in New York City, CEO co-owner Kevin Hart says his customers can't wait to get in line for the new device. SOUNDBITE: KEVIN HART, CEO AND CO-OWNER, TEKSERVE (ENGLISH) SAYING: "When we did the iPad 2 we had a line of 150 people for the iPad 3 it wouldn't surprise me if we had a line of 500 people outside on the day of the product." REPORTER BRIDGE: BOBBI REBELL, REUTERS REPORTER (ENGLISH) SAYING: "Tekserve uses their trade-in policy as a way to encourage their customers to trade up. Each device is evaluated individually so values vary widely." SOUNDBITE: KEVIN HART, CEO AND CO-OWNER, TEKSERVE (ENGLISH) SAYING: "We run the diagnostics and then we run it through a whole system that we have and a partner that we have, and Apple is part of it and then we'll figure out how banged up it is, what it looks like you know; what the internals, how well they are all working and then determine the value based on that." And as the second hand market has grown- Apple devices have been strong performers SOUNDBITE: ANTHONY SCARSELLA, CHIEF GADGET OFFICER (ENGLISH) SAYING: "Apple products do tend to hold their value a lot better than any other products within consumer electronics." Companies generally resell the device using the web, giving older iPads an extended life for consumers willing to make some compromises in the name of getting a bargain. Bobbi Rebell, Reuters.

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iPad fever: cashing in to trade up

Tuesday, March 06, 2012 - 02:21