iPads Going For Big Premium on Amazon

by Michael Comeau on May 15, 2010

The war between Adobe (ADBE) and Apple (AAPL) over the latter’s refusal to integrate flash technology in its iPhone and iPad products is still heating up – but there’s no sign that it’s taking a toll on Apple’s red-hot iPhone and iPad.

In Apple’s March quarter, it crushed Wall-Street analysts’ expectations by selling an incredible 8.7 million iPhones, up 131% year-over-year.

The iPad has also seen strong early sales, crossing the 1-million unit sales mark in 28 days – a number that would have been far higher if not for the limited supply and slow geographical rollout.

And what I just noticed today is that iPads are actually selling for a premium on Amazon.com.

Amazon itself does not stock the Apple iPad. However, third-party sellers have gotten their hands on them, possibly buying them at Apple retail stores to sell them at a profit.

This isn’t at all unusual for hot consumer-electronics products. For example, the Nintendo Wii was selling at a huge premium on eBay (EBAY) and Craig’s List after its 2006 launch.

As of Friday May 14th, the 16 gigabyte Wifi-only model is selling for $599 and up, while the 64 gig version starts at $799.99.

These are $100 premiums over Apple’s own selling prices, even though it’s unclear whether Apple will honor the warranties on devices sold through nontraditional channels.

That doesn’t seem to matter to iPad-seekers though – both the 16 and 64-gigabyte iPads are clocking in the top 15 position on Amazon’s computer and accessories best-seller list.

The verdict – Apple’s products are so strong that consumers just don’t care about the lack of Flash compatibility in Apple’s mobile devices.

The proof is in the pudding, and the pudding looks like a big fat pile of cash for Apple.

Disclosure: long AAPL

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