GME is the largest used Apple reseller in the world!
I think the market has just begun to realize that when GME has 6,000 plus stores selling used Apple products, the margins will expand and the profits will go through the roof. This could be better than the used games business. So far, they can't keep the apple products on the shelves since they are selling them so quickly, just listen to the channel checks. When they really ramp up to availability at all their stores, watch out. With IPAD 3, that will mean a whole bunch of IPAD 2s being traded in and resold by GME. That is major profit. I still say this segment will grow faster than anyone could have imagined and it will start to have a major impact on the bottom line next quarter. Short squeeze may be starting soon. Get ready for 35 by end of summer.
I totally agree with you. I think the mistake the short sellers made with this company is not giving management enough credit. Once Gamestop became cash rich, it allowed them to explore other revenue streams that fit well into their current business model. By the time the shorts realize they were wrong, they will be trying to cover at a much higher price than this. I could be wrong, but my money is invested here at least until they report 2012 year end results in 2013. I'm just trying to figure out the best price to accumulate. I mean, if people want to keep shorting it, I might as well look for the best price to buy. But, I have a feeling the bargain prices will be gone before summer.
Gme has 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. Around Christmas they had them in 400 stores. In less than 5 months they are in 1000 stores. They are on pace to have them in half the USA stores in less than a year. Looks like this imitative is working well.
The real story is if they can get them in their international stores. GME France Stores 379 Apple Retail Stores France 9. From a quick look it seems to be that way in other countries too. I interact with a lot of European exchange students during the summer. Without fail they buy some sort of Apple product before returning home. The demand and the high prices these things fetch over seas is ridiculous. Hopefully they buy them used in America and ship them out internationally.