Pocket PC demand is strong
Compaq iPaq goes for big bucks on eBay
By Stephanie Miles
Staff Writer, CNET News.com
July 14, 2000, 9:30 a.m. PT
Like other popular technology gadgets, about the only place a new Compaq iPaq can be found is at online auction sites like eBay--and often at soaring prices.
The iPaq is selling via online auctions for hundreds of dollars over the estimated retail price, as customers choose not to wait for its appearance on retail shelves. Other in-demand products before the iPaq, like handhelds from Palm and the New Internet Computer Company's Web-based computer, have also fetched auction prices well above list.
• Get the "Big Picture"
• Related News
• Message Boards
Quote Snapshot
CPQ 27.69 +0.50
HWP 135.12 +0.25
MSFT 79.12 -0.81
Enter symbol:
· Symbol Lookup
Quotes delayed 20+ minutes
The iPaq was announced last April, along with devices from Hewlett-Packard and Casio based on Microsoft's Pocket PC operating system for handheld devices. Slated to begin shipping in early June or July, the iPaq has been anxiously awaited by gadget aficionados because it is deemed by many the coolest of the Pocket PCs.
As reports of devices trickling into retailers surfaced, frustrated buyers have turned to the only outlet for the product: online auctions. The iPaq is selling for $700 and $800 on eBay and Amazon.com auctions, despite the estimated retail price of $499.
"The demand has just been overwhelming for this product. We're behind the curve," said Nora Hahn, a spokeswoman for Compaq, adding that she has seen iPaq prices as high as $1,000 on eBay.
Currently, most online retailers say they are out of stock. Online retailers like Onvia, Computers4Sure, PCZone, Egghead, CDW, NECX and MicroBase all report that they are out of the iPaq.
So buyers are turning to nonretail outlets like eBay, where lucky owners of the iPaq are taking advantage of the laws of supply and demand.
"It's the simple economic theory of supply and demand," said Zachary Kerr, who bid over $700 for an iPaq on eBay. "They exist in limited quantity, and I am one of the unfortunate souls who just doesn't own one but wants one and can't wait to have one."
Many handheld enthusiasts have turned to online auctions and message boards only after many attempts to purchase through a traditional retailer. "I can't locate the iPaq anywhere, including major and small online and offline stores," said Frank Yeh, who also bid on an iPaq at eBay. "Unfortunately, I sold my Palm Vx thinking that I would get an iPaq soon. I was wrong! If I have to pay $200 over the (retail price), I have no choice."
Microsoft is wasting no time in claiming that the overwhelming demand is an indication that its fortunes have shifted in the handheld market, which it has yet to crack |
