The popularity of Apple's iPad 2 and shortages in availability are combining to create a boom in eBay sales and profits of the device.
The entry-level and high-end iPad 2s are doing the briskest eBay business. The basic 16-gigabyte Wi-Fi-only version fetches almost $200 more than its retail price of $500, and the premium 64-gigabyte tablet with 3G capability pulls in almost 50 percent more than its retail price of $830, making eBay reselling of the devices a pretty profitable pursuit.
The run-off on eBay sales may be an indication of uncertainty about whether Apple can meet the short- and medium-term demand for the iPad 2, especially in light of possible challenges to its supply chain, according to analysts.
Demand for the devices continues to soar since its introduction in March, which sold out within hours. Cupertino, Calif.-based Apple's online site now suggests a three-to four-week wait for shipping iPad 2 units, and distributors report depletion of new stock almost as soon as it hits their loading docks. Customers around the world are frustrated with the delays and flock to online auction sites to secure their must-have tablet device.
While the initial excitement of the iPad 2 may account for some spiking of demand, concern over March's earthquake and tsunami in Japan, and the resulting nuclear power plant problems, may be fueling continuing demand. Analysts are concerned the on-going disasters will affect Apple's supply chain, especially in light of predicted shortages from closed factors and plants in Japan. With supply of critical parts like silicon chip wafters anticipated to run out in April, prices for devices could go even higher on resale sites.
Other responses to the demand include smaller retails in the U.K. marking up the price of their remaining stock in order to cash in on the short supply while they wait for the new shipments, which are scheduled to hit that country in late April.
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