March 12, 2011 4:00 AM PST
Read more: http://news.cnet.com/8301-13579_3-20042395-37.html#ixzz1GTnJJbWx
by Josh Lowensohn
The scene yesterday evening at the downtown San Francisco
Apple store.(Credit: James Martin/CNET) If there were any lingering doubts that Apple's iPad
sequel would draw the same interest the first-generation device did, they were
quashed before stores even opened their doors yesterday.
The iPad 2, a device that was unveiled just 10 days ago, launched to huge
crowds and inventory that sold out quickly, both in stores and online.
Shipping times for online orders, which opened yesterday morning at 1 a.m.
PT--some 16 hours before the first Apple retail stores began selling the iPad
2--were quickly pushed from days into weeks. This left the
best chance for customers who wanted to pick up a device before April being to
head to one of Apple's stores, or its partner retailers such as Best Buy,
Target, Wal-Mart, and carrier stores for Verizon and AT&T.
Analysts like Piper Jaffray's Gene Munster are already setting estimates for
first day sales somewhere between 400,000 to 500,000 units, some 200,000 better than the first iPad did
during the same time period in its launch. Apple is expected to unveil
preliminary unit sales on Monday, as it did on the Monday following the launch
of the first iPad.
Big numbers
Until those numbers come in, there are some signs this
launch is off to a bigger start than that of the first-generation device. At
Apple's flagship store in San Francisco for instance, which CNET was monitoring along with stores
in Manhattan, the line practically ran out of room, as it wrapped almost around
the city block. That store sold out of its entire stock of Wi-Fi-only units just
a few hours after iPad 2 sales began, leaving evening line-waiters with only the
option of buying the more expensive models with 3G service from Verizon. Worth
noting is that this is the same store that had the richest supply of iPads
following last year's shortages.
It was the same story on the other side of the country, with the line outside
New York's Fifth Avenue store growing to an estimated 800 people, with some
having begun waiting in line on Wednesday night and braving torrential
downpours. For one individual, that perseverance--as well as her spot at the
front of the line--netted her $900 from someone else who
didn't want to queue up.
At least 200 people line up outside the Apple store on
As with previous Apple launches, the art of the line wait has become a business.
The first two spots at the San Francisco store went to "runners" for TaskRabbit, a service that specializes in
sourcing out errands and other odd jobs to its workforce of vetted contractors.
James Alimeda and Josh Elavitti were paid $60 per iPad they were waiting in line
for, with each buying two. In Alimeda's case, he was already there to purchase
one for himself. Those two, along with two others in line, were part of a much
larger operation at various retailers to help people procure devices without
putting in line time.
Behind them was a group of around 35 non-English speaking line-waiters who
managed to get an Apple store employee who could speak Cantonese to act as a
translator, just a half-hour before iPad 2 sales began. According to a
report on Bloomberg, their aim was to buy iPad 2s, all going to one single
unidentified buyer, who planned to sell them on the gray market, likely at a
premium and in places where the device was not yet available.
Speaking of which, the iPad 2 goes on sale in 26 additional countries just
two weeks from now, arguably giving gray market buyers from those areas less of
an incentive to deal with international travel. However, given some of the
initial demand from this first day, there's the possibility that Apple could
once again decide to push that launch back, as it did for the first-generation
device.
The device
Of course, why people were lining up in the first place
is always on the minds of passers-by. One woman who walked past the line asked
if there was someone famous playing a show there that evening. Others were
seeing the device for the first time in an iPad 2 demo video Apple played in its
retail store display.
The iPad 2, which CNET has given a four-star rating in its
review, is a refinement of the the first-generation device. It's thinner,
it's got a faster processor and better graphics chops, and it's the same price.
It's also got new features like dual video cameras and compatibility with new
accessories like a neat cover that attaches to it with magnets and an AV cable
that can mirror whatever you're doing onscreen to anything with an HDMI
plug.
For many buyers though, this second-generation device is something they were
waiting for before pulling the trigger on the original iPad. That's what many
buyers CNET talked to mentioned as being one of the big attractors. They know
Apple's cyclical product release schedule by now and were counting on a refresh of a few key things, even if
they didn't necessarily need them.
There are things Apple could have added, but didn't. Though with lines like
this on opening day, it seems the revamp offers enough.
End of the line
As is the question every time Apple sells a product
with this much fanfare, why is there this big rush to get it on opening day? And
why can't Apple seem to meet demand when this happens again and again? With the
first iPad, this was easier to answer. It was a new product, in what had so far
been a niche category. Apple seemingly didn't anticipate the demand, and thus
was forced to play catch-up as it went on to make its way to a million units
sold in under a month's time.
This time around, however, Apple's got more retail stores, and a handful of
retail partners on board to get what is likely to be more units out the door in
a shorter amount of time. The original iPad has also proved to be an
overwhelming success, with Apple selling more than 15 million of the devices.
Even so, Apple had very subtly reconfigured its launch plans
with this one to encourage people to buy the device in person, doing new things
like keeping online purchases from starting until the day it went on sale, while
throwing in the usual mix of temptations for buyers to come to its own stores,
with food and drink for the wait in line and personalized setup (the free
service that has retail employees getting new iPads up and running before buyers
leave the store--an important step considering the iPad, like the iPod Touch, first
needs to be activated with iTunes before buyers can begin using it.
The simplest answer to the mad rush, though, continues to be Apple's terrific
marketing--one of the many things that separates Apple and its products from its
competitors. For many who go through the wait, it's not just about the device,
it's the experience that happens before they even break out their credit card,
something that's hard to put a price tag
on.
The scene yesterday evening at the downtown San Francisco
Apple store.
sequel would draw the same interest the first-generation device did, they were
quashed before stores even opened their doors yesterday.
The iPad 2, a device that was unveiled just 10 days ago, launched to huge
crowds and inventory that sold out quickly, both in stores and online.
Shipping times for online orders, which opened yesterday morning at 1 a.m.
PT--some 16 hours before the first Apple retail stores began selling the iPad
2--were quickly pushed from days into weeks. This left the
best chance for customers who wanted to pick up a device before April being to
head to one of Apple's stores, or its partner retailers such as Best Buy,
Target, Wal-Mart, and carrier stores for Verizon and AT&T.
Analysts like Piper Jaffray's Gene Munster are already setting estimates for
first day sales somewhere between 400,000 to 500,000 units, some 200,000 better than the first iPad did
during the same time period in its launch. Apple is expected to unveil
preliminary unit sales on Monday, as it did on the Monday following the launch
of the first iPad.
Big numbers
Until those numbers come in, there are some signs this
launch is off to a bigger start than that of the first-generation device. At
Apple's flagship store in San Francisco for instance, which CNET was monitoring along with stores
in Manhattan, the line practically ran out of room, as it wrapped almost around
the city block. That store sold out of its entire stock of Wi-Fi-only units just
a few hours after iPad 2 sales began, leaving evening line-waiters with only the
option of buying the more expensive models with 3G service from Verizon. Worth
noting is that this is the same store that had the richest supply of iPads
following last year's shortages.
It was the same story on the other side of the country, with the line outside
New York's Fifth Avenue store growing to an estimated 800 people, with some
having begun waiting in line on Wednesday night and braving torrential
downpours. For one individual, that perseverance--as well as her spot at the
front of the line--netted her $900 from someone else who
didn't want to queue up.
At least 200 people line up outside the Apple store on
the Upper West Side of Manhattan yesterday, waiting for the iPad 2 to be
released.
(Credit: Sarah Tew/CNET) released.
As with previous Apple launches, the art of the line wait has become a business.
The first two spots at the San Francisco store went to "runners" for TaskRabbit, a service that specializes in
sourcing out errands and other odd jobs to its workforce of vetted contractors.
James Alimeda and Josh Elavitti were paid $60 per iPad they were waiting in line
for, with each buying two. In Alimeda's case, he was already there to purchase
one for himself. Those two, along with two others in line, were part of a much
larger operation at various retailers to help people procure devices without
putting in line time.
Behind them was a group of around 35 non-English speaking line-waiters who
managed to get an Apple store employee who could speak Cantonese to act as a
translator, just a half-hour before iPad 2 sales began. According to a
report on Bloomberg, their aim was to buy iPad 2s, all going to one single
unidentified buyer, who planned to sell them on the gray market, likely at a
premium and in places where the device was not yet available.
Speaking of which, the iPad 2 goes on sale in 26 additional countries just
two weeks from now, arguably giving gray market buyers from those areas less of
an incentive to deal with international travel. However, given some of the
initial demand from this first day, there's the possibility that Apple could
once again decide to push that launch back, as it did for the first-generation
device.
The device
Of course, why people were lining up in the first place
is always on the minds of passers-by. One woman who walked past the line asked
if there was someone famous playing a show there that evening. Others were
seeing the device for the first time in an iPad 2 demo video Apple played in its
retail store display.
The iPad 2, which CNET has given a four-star rating in its
review, is a refinement of the the first-generation device. It's thinner,
it's got a faster processor and better graphics chops, and it's the same price.
It's also got new features like dual video cameras and compatibility with new
accessories like a neat cover that attaches to it with magnets and an AV cable
that can mirror whatever you're doing onscreen to anything with an HDMI
plug.
For many buyers though, this second-generation device is something they were
waiting for before pulling the trigger on the original iPad. That's what many
buyers CNET talked to mentioned as being one of the big attractors. They know
Apple's cyclical product release schedule by now and were counting on a refresh of a few key things, even if
they didn't necessarily need them.
There are things Apple could have added, but didn't. Though with lines like
this on opening day, it seems the revamp offers enough.
End of the line
As is the question every time Apple sells a product
with this much fanfare, why is there this big rush to get it on opening day? And
why can't Apple seem to meet demand when this happens again and again? With the
first iPad, this was easier to answer. It was a new product, in what had so far
been a niche category. Apple seemingly didn't anticipate the demand, and thus
was forced to play catch-up as it went on to make its way to a million units
sold in under a month's time.
This time around, however, Apple's got more retail stores, and a handful of
retail partners on board to get what is likely to be more units out the door in
a shorter amount of time. The original iPad has also proved to be an
overwhelming success, with Apple selling more than 15 million of the devices.
Even so, Apple had very subtly reconfigured its launch plans
with this one to encourage people to buy the device in person, doing new things
like keeping online purchases from starting until the day it went on sale, while
throwing in the usual mix of temptations for buyers to come to its own stores,
with food and drink for the wait in line and personalized setup (the free
service that has retail employees getting new iPads up and running before buyers
leave the store--an important step considering the iPad, like the iPod Touch, first
needs to be activated with iTunes before buyers can begin using it.
The simplest answer to the mad rush, though, continues to be Apple's terrific
marketing--one of the many things that separates Apple and its products from its
competitors. For many who go through the wait, it's not just about the device,
it's the experience that happens before they even break out their credit card,
something that's hard to put a price tag
on.
Read more: http://news.cnet.com/8301-13579_3-20042395-37.html#ixzz1GTnJJbWx
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