UAE online retailer defends Apple Watch grey market pricing

JadoPado’s CEO says 200% mark-ups ‘way higher than expected’

Tags: Apple IncorporatedEmaxJadoPado (www.jadopado.com)Jumbo ElectronicsUSA
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UAE online retailer defends Apple Watch grey market pricing UAE grey market imports of the Apple Watch carry premiums some retailers find ‘ridiculously mindboggling’. (Justin Sullivan/Getty Images)
By  Stephen McBride Published  April 30, 2015

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.

GALLERY: Things you should know about Apple Watch before buying

GALLERY: Apple Watch specs and features

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.

GALLERY: Things you should know about Apple Watch before buying

GALLERY: Apple Watch specs and features

JadoPado's Kassim said most of the movement of Apple Watch stock has come from third parties.

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