A Derivative of Apple’s (NASDAQ:AAPL) Success?

by Jared Levy on June 22nd, 2010

So after the market closed yesterday, I took a ride down the street to my dentist’s office for my every-six-months hour of fun and excitement with the hygienist.  On my way home, I decided to take a different route that took me right past the Highland Park Apple Store, about a block away from my home.  I had heard a rumor about a guy who had been camping out since last Friday for the new iPhone 4 and I had to check this out.  Sure enough, with tent, Bunsen burner, lawn chairs, and an endless supply of water (it’s 103 degrees today, with not a cloud in sight), I saw him.

A Derivative of Apple's (AAPL) Success?

Justin Wagoner is a local celebrity and maybe a bit crazy for waiting in the 100+ degree endless summer solstice sun.   According to him, he has been the first in line for the all of the iPhone releases at this store.

He was greeted with some honking by passing Dallas-ites during the three minutes I was there, but many just think he is crazy, according to local blogs and articles.   I would call him determined and passionate to say the least. I mean, you can’t get a iPhone 4 right now, so maybe he’s not so nuts. They did pre-sell 600,000 in one day.

But this story isn’t about Justin or his fellow crazed Apple fans braving ridiculous weather conditions alone to get the iPhone 4, it’s about the slew of 3Gs and 3GSs that will be hitting the secondary market, namely by way of places like eBay, craigslist and Gazelle.com, who has received a record number of iPhone trades.   By my estimates, there are more than 49 million 3Gs and 3GSs in the hands of folks around the world.  When Apple rolled out the 3GS, a large amount of legacy owners upgraded their phones, and that change was largely to do with speed rather than the phone itself.

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