Trades of iPod(R), iPhone(R) and iPad(R) Prove Successful for GameStopFont 9:00 AM ET 12/28/11 | BusinessWire
In the months since GameStop (NYSE: GME) began accepting trades on the iPod(R), iPhone(R) and iPad(R), the company has seen strong consumer enthusiasm for the program. GameStop customers are taking advantage of this new option to put money in their pockets or use store credit to pay for video games, consoles and pre-owned gaming tablets and mobile devices by scoring trade credit. Customers can receive up to $180 for an iPod Touch(R), up to $300 for an iPhone(R) and up to $400 for an iPad(R).
"The velocity of this trade program has exceeded our expectations," stated GameStop president Tony Bartel. "We expect to see strong post-holiday traffic as customers trade in older models that were replaced by gifts."
With the success of the iPod(R), iPhone(R) and iPad(R) trade program, the company will continue to expand the availability of GameStop refurbished devices for sale in select stores and online at www.GameStop.com.
THE SHORTS ARE EXITING THE BUILDING!
So, maybe someone can answer a question for me. I have followed GME and the VG industry for years and traded and invested long and short along the way in all of the VG names.
I read the article and the only thing they have pointed out so far is how successful the program has been for trade ins. They did not indicate how they will make money on the other side, or if they are making money. Taking trades for cash or product, but not monetizing what they receive is s losing proposition.
My question is are they selling the used goods or farming them out? If sales of the goods were strong, I think they would have shouted it from the rooftops, but they did not.
I am holding puts for the January update. A very small amount mostly just for the heck of it.
This is a new initiative that GME has started. They have a press release on 9/12/11 saying they are accepting trade ins for apple devices. They didn’t start selling ipads on their website until late November early December. You have to remember they are relying on customers to trade in their apple product, so it will take time to build up an inventory.
They are taking the used apple devices in and refurbishing them by adding the gamestop app and some preloaded games for extra value. The tablets and Ipads are in very few stores, maybe less than 10%. The GME by me does have them and I talked to one of the employees. He said for the Ipad 16gb wifi they are offering $140 cash & $180 trade in credit. Ipad 16 gb wifi is than resold at $374.99. For the Ipad 2 16gb wifi they are offering $200 cash and $250 trade in credit. Ipad 2 16gb wifi is than resold $474.99. He said they had a dozen of each and are all sold out and are expecting an order first or second week of January. They are also starting to accept trade ins of droid tablets.
I am guessing they did not release any sales numbers because they are waiting for Saturday December 31 which would end their 9 week holiday season. An extra week of sales when people have Christmas gift money can really make the numbers look impressive. GME has proven themselves on used games and consoles. The tablets have the same basic problems as the other used products; do they work and is a new model or upgrade coming soon.
I am expecting very strong used game sales, maybe even a new sales record. The tablets will also increase hardware sales significantly.
IPODS and IPADS and IPHONES are sold either in stores or online at Gamestop.com.
They buy the product and mark it up and sell it.
Why would'nt people buy them preowned this way?
You as a buyer can get apple products at much less than original retail price.
It is all available for you to see the sale prices and products at Gamestop.com. They have been marketing the products online and right now are using the radio airwaves to market the program.
Just giving the facts. This Apple reseller thing will be huge, Calm. Maybe you should get all your stock tips from me, you might make some money. Although selling at 60 might have been a better strategy. Wait a minute, I told you to sell at 60. No worries, we will get there again when this cash machine buys back a quarter of their outstanding stock with their massive free cash flow and absolutely ZERO DEBT, which will be a reality in January.