Huge interest in reselling iPad 1s point to many upgrading to iPad 2

A huge number of iPad Generation 1 owners apparently plan on upgrading to the iPad 2, based on the number of them reselling their devices on eBay and other sites. The fact that all of the iPad models are sold without a service contract means its easy to pull the trigger when a new model is released.

Although it was thought that the demand for the iPad 1 would not be high, because the device is missing the front- and rear-facing cameras of the iPad 2, and has a slower processor, the fact that Apple did not improve the screen resolution or change the screen size might be the reason that many are clamoring for the iPad 1.

Some self-described couch potatoes, commenting after the iPad 2 announcement, said that with the incremental changes to the iPad 2 they would love to get their hands on an iPad 1, since their greatest usage would be while sitting on a couch in front of a TV, and they didn't need a speed demon and didn't care about the reduce weight or reduction in thickness. Nor, some said, did they see a need for the cameras, at least for their use.

Gazelle, a site which will readily buy your used electronics in a pretty painless fashion, even has a dedicated iPad page set up. Gazelle said they bought more than 2,000 iPads from customers "within the few hours" of the iPad 2 announcement, and by Monday morning, that number had risen to more than 7,000. The company said:

“We have paid out well over $2 million for iPads since the announcement of the new model. The lowest model, with the 16 gigabytes of memory and built-in Wi-Fi, has been the most traded iPad so far. Based on the traffic and numbers we’re seeing in the iPad resale market, a lot of people will be buying the iPad 2.”

Prices range from between $300 and $500 for the first generation iPad (depending on storage and connectivity options), in pristine condition. A 16GB wi-fi only iPad 1 with normal wear and tear (meaning slight scuffs and scratches) was priced at $262 on Tuesday morning.

On eBay, the average for a wi-fi only 16GB model is about $305. That model originally sold for $499. Meanwhile, the highest-end model, with 3G and 64GB of storage is averaging about $585. It originally sold for $829.

Apple has said the iPad 2 will maintain the pricing of the iPad 1. That means the prices will be $499, $599 and $699 for 16GB through 64GB storage models, wi-fi only, with 3G models (both Verizon and AT&T in the U.S.) priced at $130 more at each tier.

Via: The New York Times