This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple Trade-In Market Soars Ahead of iPad 3

Stocks in this article: AAPLEBAYAMZN

NEW YORK ( TheStreet) -- Apple's (AAPL) iPad 3 is just a rumor for now, but already tablet owners are looking to trade in current models of the device.

The move comes as the secondary market for Apple products explodes while consumers look for ways to upgrade to the buzziest and shiniest new gadgets.

The secondary market for Apple products is exploding.

Since reports began circling in early February that Apple would soon announce the iPad 3 -- featuring a faster processor and higher resolution display than its predecessor -- secondary electronics buying company Gazelle saw a 500% jump in iPad trade-ins.

Boston-based Gazelle saw around 10,000 iPad trade-ins following the launch of the iPad 2 and expects the number of swaps to double or triple this year during the tablet's third iteration, said Gazelle CEO Israel Ganot.

Gazelle is just one of several companies, including upstarts like NextWorth and YouRenew and giants including Amazon (AMZN) and eBay (EBAY), hoping to tap into the estimated $50 billion market for used electronics.

Spurred by a surge in demand from consumers looking to sell old versions of the iPhone and iPad to subsidize their purchase of upgraded devices, Gazelle's revenue grew 67% last year to $35 million.

Ganot expects the iPad 3 to have a major impact on Gazelle this year and is looking to drive attention to the business through TV ads.

"If you think about the iPhone introductions, the iPad and the Kindle, new electronics come out on the market every single month it seems," Ganot said. "Consumers are conditioned to buy new devices because they want the latest and the greatest all the time."

Billerica, Mass.-based NextWorth said that it saw a 400% surge in traffic on the iPad section of its site following reports about the iPad 3, said NextWorth chief marketing officer Jeff Trachsel.

The site will pay around $300 for a 32GB iPad 2 with 3G in good condition.

Transchel said he expects the majority of consumers to trade-in the original iPad, rather than the iPad 2.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,390.52 +195.10 1.13%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs