Folks over at Engadget recently reported that the discount department store chain T.J. Maxx and their sister chain Marshals have started selling 16GB iPad Wi-Fi only mode in select stores across the US.
While that might not sound significant, the price at which they are selling surely would! At $399 (plus taxes), the 16GB iPad is $100 cheaper than Apple's price.
The news of the deal first came out as a rumor. This was subsequently confirmed by T.J. Maxx in an official tweet from their twitter account.
Anyway, what we do not know as of now is the length of this promotional offer and information regarding the stores where this offer is being rolled out. Not all T.J. Maxx stores are selling the iPads, mind you.
A Macrumors forum reader has reported that T.J Maxx's sister chain is also selling Apple's iPad for $399.
When Engadget called up folks at T.J. Maxx to check whats going on, they learnt that these new stash of cheap iPads were actually being stocked for sale on Black Friday. However, now that the cat is out of the bag, they have gone public with the announcement.
If you're wondering how T.J Maxx and Marshalls are able to sell iPads at a $100 discount then the answer to your question is quite simple, the retailers are selling the iPads at a loss as a marketing strategy to get new customers.
So if you are planning to buy an iPad then hurry up and grab this opportunity as soon as possible as the stocks are limited.
If you manage to get hold of one then please drop us a line in the comments section below.
I would not buy it for even $199. Ok, to re-sell it yes not to keep.
that's because you have no use for it. As a business owner, I can see TONS of use for it. I am just waiting for the next version. Also, how are they selling it for a loss? It's cost Apple, what? $259 to make? They probably sell it to resellers for $379 I'd guess. But still, even at $399, no one's taking a loss. they're just not making any money. Any idea how much apple sells them for to resellers?
What happens is that the iPad is being bought for $400 (or slightly lower) and then being sold for $300.
Not many are being sold — only about 80 according to cnet, most of them being located in its eastern stores.
What?! "bought for $400, then sold for $300"?! That doesn't make sense. No business is going to give away a hundred dollars, and besides, they're selling them for $400. Unless I misunderstand you, what are you talking about?
Expert is NOT an expert! It's a misnomer. He couldn't even get the prices right. They're buying DEFINITELY for lower than $499. And then selling it for $399. They are NOT losing money, but just not making a big profit at all. They're lucky to even be able to sell the darn pads.
Good deal. That's what I thought.
its called in the business a loss leader, people go in buy the IPAD which they make a loss or no profit but then buy something else or become a new regular customer, hence in the long term they make money, super markets do this all the time
They probably are selling for a loss. But they make more in the long run. The press they have gotten on this sale would have cost Millions in TV and Print ads. By selling, say, 1000 iPads at a ~$50 loss each, the $50k cost is saving them millions in advertising.
Example, when most new Game systems are released, like the Playstation, the companies normally sell them for a loss. But that's because they want as many systems out there so they can make billions in game sales that are so cheap to make the profit margin is staggering.
Is it that big a secret what Apple sells ipads for wholesale. Surely one of the readers must know this. I wonder if big movers like BestBuy get a better deal?
it look like apple is getting ready for the new ipad next year
You guys need to re-read this entire article. They're selling ipads at a loss as a marketing scheme to attract customers to their stores. This is often practiced by big retail stores.