Customers take chances with iPad

Dubai: Apple's failure to launch its new iPad computer tablet internationally is leading to runaway grey market sales in the UAE by electronics dealers with no official affiliation with a corporation that has redefined global computing in the last decade.

Customers are snapping up the 680-gramme media and computing tablets despite warnings that the iPad is not backed by an official warranty through Apple because the units were purchased indirectly from suppliers in the United States and then shipped to the Middle East.

Apple's iStyle stores in Dubai will not begin selling the devices until the iPad is officially launched in the UAE.

California-based Apple has issued a media advisory noting that after selling 500,000 iPads in the first week following its April 3 launch, the corporation "made the difficult decision to postpone the international launch of the iPad by one month, until the end of May."

To satiate those abroad eager to buy the hottest new gadget, Apple said it will "announce international pricing and begin taking online pre-orders on Monday, May 10. We know that many international customers waiting to buy an iPad will be disappointed by this news but we hope they will be pleased to learn the reason — the iPad is a runaway success in the US thus far."

Meanwhile, with untold numbers of the latest Apple sensation flying off Dubai shelves, grey-market sales of the iPad could lead to a string of disappointed consumers if the first-generation media and computing device develops serious glitches that won't be covered by Apple.

Asked to what degree rising international demand was contributing to iPad sales in the US, a Dubai academic said it certainly isn't helping.

"I think this is a bad thing for Apple," said Dr. Pranab Pani, Economics and Statistics Lecturer at Middlesex University Dubai. "They don't have control over their product."

Unlicensed dealers

Lack of control over the iPad's distribution worldwide by unlicensed dealers is in stark contrast to Apple's tightly controlled business mantra since the company revolutionised personal computers with Apple II and the Macintosh.

"When people buy from the grey market they can't be sure if they're getting the quality," Panis said in an interview, noting consumers trust Apple as an innovator which stands behind it cutting edge products.

Inside Mussallah Tower in Bur Dubai — a popular destination for electronics aficionados — a small store window sign offering the iPad beckons shoppers into Shakti International computer shop where manager Rahan Muhammad is enjoying brisk sales of the 64g iPad for Dh4,000.

He confirmed that the iPad warranty is void because he is not an official Apple dealer but believes there shouldn't be any problems with the units which are shipped from the United States in a sealed box.

Fixing off warranty

If bugs do happen, Muhammad said customers can "bring it back here and I will send it to the Apple store. We can get it fixed with a technician off warranty. They know I'm a dealer, I can get it fixed in a week."

Nearby at the Al Ain Centre Computer Plaza on Mankhool Road, several other electronic shops display the iPad for sale and with equal fervour say repairs can be done in future.

Mannish Adwani, senior salesperson with Computer Care, confirmed the 16 units in stock are being sold "without warranty" but said any problems can be addressed.

"It's no use if it breaks, we will take you to a technician," he said, adding "Apple won't give us the iPad until they release it officially in Dubai."

However, claims by Dubai electronics dealers that new iPads will be fixed by Apple technicians in the Middle East were challenged by a salesperson at one of several Apple-licensed iStyle stores in Dubai.

"We will not fix any grey market iPad bought outside of the US before the official release of the product here by Apple," he said. "We only fix products that were bought from licensed Apple distributors in the Middle East. We verify each product with a serial number that we have records on."

He claimed that off-warranty iPads would have to be shipped to the United States to be fixed with shipping and repair charges paid for by the unit owner.

Asked whether grey market sales iPads could hurt future sales by Apple in the Middle East after an official launch of the iPad, the salesman said curiosity for the game-changing tablet will remain high for some time.

"No worries, the demand is high and will still be there when the iPad is launched soon here in the region," he said.

Demand exceeds supply

According to Apple, the firm is working overtime to fill orders for its new iPad computer tablet after selling 300,000 units on its first day earlier this month.

In a statement in mid-April, the company said it has been overwhelmed with demand at its Cupertino, California, headquarters.

"Although we have delivered more than 500,000 iPads during its first week, demand is far higher than we predicted and will likely continue to exceed our supply over the next several weeks as more people see and touch an iPad."

Mirroring the craze spawned by the game-changing release of the iPhone in 2007, the new iPad is the latest rage with e-savvy consumers.

Apple's CEO Steve Jobs said in a statement that "iPad is our most advanced technology in a magical and revolutionary device at an unbelievable price."

The unit is being sold from $499 (Dh1,832), roughly half the cost of grey-market base model iPads now being sold in the UAE.

Using 12 next-generation multi-touch applications, Apple attributes the high interest to iPad's abilities, including "browsing the web, reading and sending e-mail, enjoying photos, watching videos, listening to music, playing games, [and] reading e-books."

It is completely compatible, Apple said, with more than "140,000 apps on the App Store, including apps already purchased for your iPhone or iPod touch."

The Wi-Fi-enabled iPad can also download "11 million songs, over 50,000 TV episodes and 8,000 films" from Apple's highly popular iTunes store, Apple said.

About the iPad

Source: Apple.com