Apple iPad Trade-Ins Spike Over Black Friday Weekend
In yet another sign that Apple (NASDAQ:AAPL) will likely have a highly successful holiday shopping season, online trade-in site Gazelle reported that it saw a massive spike in the number of iPad trade-ins for cash over the Black Friday and Cyber Monday weekend. The unusually high trade-in levels suggest that many Apple users are planning to replace their older iPads with one of Apple’s recently released models.
“We’re seeing a lot of tablets getting traded in, but predominantly we’re seeing second-generation and third-generation iPads, and iPad minis coming in,” Gazelle CEO Israel Ganot told CNBC. “The overall growth that we saw over the weekend between Black Friday and Cyber Monday was 74 percent for the site and was much higher for iPads. We’re clearly seeing iPads and tablets as a new growth category for us.”
According to Ganot, iPad trade-ins were up 175 percent compared to last year. The Gazelle CEO also pointed out that many of these customers appear to have the intention to purchase new iPads. “We surveyed our customers and what we heard was that nearly 40 percent of consumers want to get an iPad for the holidays,” stated Ganot. “The new iPad Air, the new iPad mini — these are great products.”
Ganot also noted that there was a similar surge in trade-ins for Samsung’s (SSNLF.PK) smartphones. However, he was less certain if Samsung’s users were planning to upgrade to another Samsung device. After observing that the iPhone 5S was a “really good product,” Ganot told CNBC that, “I wouldn’t be surprised if what we’re seeing here is a migration from Samsung Galaxy – Galaxy 3, Galaxy 4 – to iPhone.”
“I think this is going to be a great quarter for Apple and we’ll see the results in a couple months,” added Ganot. Ganot’s perspective on Apple’s December quarter sales is also supported by recently released data from market research firm Parks Associates. According to Parks Associates’ research, Apple is currently dominating seven key categories of planned holiday purchases in consumer electronics, including tablets.
A survey of thirty-eight Apple Stores conducted by Cantor Fitzgerald analyst Brian White over the Black Friday weekend found a similarly strong consumer demand for Apple’s iPads. White also cited a Consumer Electronics Association survey that revealed that 39 percent of consumers shopping for an electronics product over the weekend were either buying or planning to buy a tablet.
During Apple’s fiscal fourth quarter earnings call, CEO Tim Cook predicted that, “it’s going to be an iPad Christmas.” Thanks to overall strong consumer demand for tablets and iPads in particular, it appears that Cook’s prediction is coming true.
Here’s how Apple traded on Friday.
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