UAE online retailer defends Apple Watch grey market pricing
JadoPado’s CEO says 200% mark-ups ‘way higher than expected’
UAE-based online retailer JadoPado yesterday defended pricing of the Apple Watch, even as national Apple resellers said they would not resort to grey-market imports for the Cupertino company's first wearable device.
JadoPado's stock of Watches, most sold by third parties, carried premiums of as much as 250% above US Apple Store listings on Tuesday, but in mid-March, when asked how much consumers could expect to pay on the grey market for the wearable, Omar Kassim, chief executive officer, JadoPado said: "My gut feeling is between $349 and $500 [AED 1,280 and AED 1,830], so about a $150 [AED 550] premium."
"It's been way higher than I expected," Kassim said yesterday, in an emailed statement sent to ITP.net. "When I made that prediction, I was expecting Apple to have stock available in stores on launch day, resulting in a decent amount of stock being available to be moved out across the world. Unfortunately, for the first time ever, they decided to leave it online only, [presumably] due to a lack of supply, and that has resulted in very small amounts of pre-order stock making their way to Dubai and [hence] extremely high prices."
The Wall Street Journal today shed some light on Apple's taut supply lines for the Watch, reporting that delays were caused by a faulty component from a Chinese manufacturing partner. Apple has reportedly since switched to an alternative supplier that was already making the component, but that company is having difficulty in ramping up production rates.
JadoPado's Kassim said most of the movement of Apple Watch stock has come from third parties.
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