iPod's Success Creates Another Secondary Market

from the 90-days-same-as-cash dept

Along with the booming accessory market, strong iPod sales are creating another growing secondary market: used iPods. Analysts say that about a third of iPod buyers are repeat customers, and more and more of them are selling their old hardware or trading it when when they get a new one. Trade-in deals are becoming increasingly common, with many retailers offering better deals than the 10 percent discount Apple offers — then turning around and selling the old models at a profit. Wonder if Apple will try to take a chunk of revenues from this iPod-related business, too, or if they’d prefer to just try to shut down used iPod sellers altogether.

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Comments on “iPod's Success Creates Another Secondary Market”

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Levi Jeans says:

No Subject Given

didn’t they already make a profit on the FIRST sale of each ipod? Are they now trying to make make yet another profit on that single ipod? why not just up the price the first time around?

the music industry should learn from this, and start asking to make additional profit from used cd retailers… “Moby Disc”, “Second Spin”, Amazon, eBay and those alike should all start paying up.

yeah it sounds ridiculous… but too far fetched for the big businesses to do? probably not

(read sarcasm)Levi Jeans now wants a cut of the profit on each RESALE of their clothing from second-hand stores.

David Mitchell (user link) says:

I don't think Apple will care

It’s kind of like the used games market, or used car market, that means Apple sells accessories for the used iPod’s and lets not forget their biggest cash cow: iTunes (the reason Apple keeps their prices low on the iPod to begin with). People with used iPod’s will be buying their music on iTunes all the same, which still generates a lot of revenue or perhaps more then selling a brand new one. If one iPod owner buys an average of 75 dollars of music off iTunes in the course of that iPod’s usage, that maybe more profit for Apple then they get selling a single iPod. It’s the same reasoning why game consoles are sold so cheap given the hardware in them, because their is a larger profit margin on the games and royalties and accessories, so its more important to place the consoles in peoples homes then make a profit off them.

Plus people who get used to using their used iPod will get hooked a spring for the brand new latest greatest later on.

The Big Kahuna says:

iPods great targets for TSA thiefs

Last weekend while traveling across the country on a major airline, I had my iPod mini stolen by a TSA inspector. The iPod was buried under clothes in the middle of a full-sized piece of luggage and was securely enclosed within a neoprene exercise belt. Nothing else in the bag was disturbed including the $500 digital camera packed right next to the iPod. The neoprene case had been purposely opened, the iPod removed, and the suitcase closed again. Evidently those x-ray machines are very effective at identifying electronic devices.

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