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Friday, September 20, 2013

Elation turns to anger as stores run out of Apple's iPhone 5S model: Handsets being sold on eBay for THREE TIMES their retail value and on black market outside shops



  • .New iPhones went on sale at 8am local time in countries around the world
  • .Two devices have gone on sale - the luxe 5S and cheaper 5C
  • .Stores in Liverpool and Cardiff sold out of the iPhone 5S by 8am
  • .Fans angry at being turned away after others were allowed four phones
  • .Handsets sold on eBay Friday morning for £2,000 - three times retail value
  • .Other phones sold on the black market outside London's flagship store
  • .Networks in the UK and U.S complain of 'grotesquely' low stock levels
  • .The gold model proved most popular selling out online in certain regions  
Apple fans desperate to get their hands on the new iPhone that went on sale this morning were left disappointed and angered after iPhone 5S handsets sold out in certain locations before stores even officially opened. 
The phones are now in such demand that some have appeared on eBay for three times their retail value, while others are being blatantly re-sold on the black market outside shops with mark ups of around £100.
Stocks of the iPhone 5S sold out by 7.50am UK time at the Apple store in Cardiff and by 8am in Liverpool as the limited amount of tickets reserving handsets only stretched to around half the people in the queue.  
People make brazen deals on the black market
People make brazen deals on the black market as they sell on the New iPhone 5s outside the Apple Store on Regents Street in Central London in broad daylight, just hours after it went on sale this morning
others are being blatantly re-sold on the black market outside shops with mark ups of around £100
others are being blatantly re-sold on the black market outside shops with mark ups of around £100
The phones are now in such demand that some have appeared on eBay for three times their retail value, while others are being blatantly re-sold on the black market outside shops with mark ups of around £100
Handsets were being sold outside Apple stores by customers who had managed to get their hands on them to others who hadn't, or who didn't want to queue
Apple fans desperate to get their hands on the new iPhones that went on sale this morning were left disappointed and angered after the 5S handset sold out in certain stores. The phones are now in such demand that some were being re-sold on the street as well as online

NETWORKS LEFT 'FRUSTRATED' BY IPHONE 5S SHORTAGES

The BBC has discovered network operators in the UK are in short supply of the latest iPhone 5S.
Several networks said stock 'was severely limited in the UK', and feared many customers would be disappointed.  
Although pre-orders for the 5C model began on 13 September, Apple did not allow the 5S to be reserved in advance. 
An unidentified network spokesman told the BBC they had been sent 'crates and crates' of the 5C, but were being 'drip fed' the more expensive 5S. 
O2 is only selling the phones online, although customers can test demo models in stores. 
A spokesman said this is the first time O2 has had to put its stock completely online because of the shortage. 
Vodafone admitted not all of its stores across the country would have the phone on the day of launch.  
Sources at U.S. networks added that they have received significantly fewer handsets than expected, too. 
One told AllThingsD: 'We will have grotesquely unavailable inventory'.
Another complained of 'extremely disappointing shipments from Apple, ' yet didn't think it would be a problem in the States because the iPhone 5C will be more popular.
Apple has not commented on the reports.
Stocks in Sheffield were also affected and Twitter user Richard Devine tweeted before lunchtime: 'iPhone 5s sold out at Meadowhall. Half the queue just got sent home. Not a particularly massive queue either.'
People had been lining up from Thursday afternoon at the Liverpool ONE shopping centre to make sure they were among the first to get their hands on the latest smartphones.
But there was uproar among queuing fans after an announcement was made around 7am to say there were no more 5S models available - only the less advanced 5C.
 
There were further complaints against people who had bought handsets purely to sell them on to friends or strangers. 
Ethan Martin, 20, from Oxford, waited for five days to safeguard his place in the London queue said: 'I have no interest in keeping the two phones I have bought, I'm waiting in line for others. 
'I have one person back home who I came here on behalf of and I'll sell the other one.
'I should make around £650 profit on the handsets, it's less than would have hoped for but it's alright for five days work.'
The gold model of the iPhone 5S has proved most popular, selling out in certain regions online and in stores. 
Apple's official online shop is showing dispatch dates for all three iPhone 5S models as October. 

Customers were allowed to buy four handsets at a time in Liverpool stores which caused fury when half of the queue were told there was not enough iPhone 5S in stock for everyone to receive one
Customers were allowed to buy four handsets at a time in Liverpool stores, which caused fury when half of the queue were told there were not enough iPhone 5S handsets in stock for everyone to receive one
One handset sold for £2,050 on eBay just hours after going on sale at Apple shops
The phones are now in such demand that some have appeared on eBay for three times their retail value. Here, one handset sold for £2,050 on the internet auction site just hours after going on sale at Apple shops
The gold model of the iPhone 5S, pictured, has proved most popular, selling out in certain regions online and in stores.
The gold model of the iPhone 5S, pictured, has proved most popular, selling out in certain regions online and in stores. Apple's official shop is showing dispatch dates for all three iPhone 5S models as October. The iPhone 5C handsets are shown as being available in three business days
A bustling black market in brand new iPhones also appeared around Apple's flagship London store on Regent Street.
Apple set a strict limit on purchases at two per customer, although many surplus phones were being sold outside the doors in front of staff, security and police.
The phones, sold in Apple's distinctive white carrier bags with silver logo, were carried away from the store in blue plastic bags usually found in newsagents, said one witness.
Once behind the shop the bags were passed through open car window to the occupants inside, hidden behind blacked-out glass.
Apples and chairs: In New York, hundreds of Apple hunters camped in the street outside the city's flagship store on Fifth Avenue
Apples and chairs: In New York, hundreds of Apple hunters camped in the street outside the city's flagship store on Fifth Avenue
One of the dealers, a Jordanian immigrant said: 'I'm here today to buy phones and pass them on to my friend who has a phone shop on Edgware Road.
'We should make around £100 on each phone, so for a 16GB version that costs £549 we will sell it for £650. It's probably not strictly legal, but who cares.'
In Texas, fans camping outside the Houston store were held at gunpoint and robbed them of all their wallets, old phones, and tablets.
Network operators told the BBC that stock for the iPhone 5S  'was severely limited in the UK' and although had been sent 'crates and crates' of the 5C, but were being 'drip fed' the more expensive model.
Compare and contrast: An employee shows the the backside of a new Apple iPhone 5C, right, and iPhone 5S, left, at a Verizon store in Orem, Utah
Compare and contrast: An employee shows the the backside of a new Apple iPhone 5C, right, and iPhone 5S, left, at a Verizon store in Orem, Utah
Members of pop group the Saturdays Una Healy, left, Vanessa White, centre, and Rochelle Humes, right at the launch of Apple's new iPhone 5S and 5C at Phones4U in Oxford street, London
Members of pop group the Saturdays including Una Healy, left, Vanessa White, centre, and Rochelle Humes, right, pose at the launch of Apple's new iPhone 5S and 5C at Phones4U in Oxford Street, London

APPLE'S NORTH/SOUTH DIVIDE

Although queues stretched for a mile long for the Apple store in Regent Street London, customers in the north of the country were less bothered about the new phones. 
Staff at Liverpool's ONE shopping centre had anticipated hundreds of customers, and set up barriers to control the queues. 
However, fewer than half the expected numbers turned up in anticipation for the launch. 
Stores in Newcastle saw a similarly low turn out.
People hoping to get the handsets from O2 stores were also left feeling disgruntled as the network announced it was only selling the phones online, although added customers could test demo models in stores.
A spokesman said this is the first time O2 has had to put its stock completely online because of the shortage.
Elsewhere, Vodafone admitted not all of its stores across the country would have the phone on the day of launch and demand for the phones caused problems with EE's website.
At 8am, hundreds of people streamed through the doors of Apple's flagship Regent Street store in London to get their hands on the device.
Queues began forming in the early hours of the morning outside the Apple Store in Newcastle's Eldon Square, pictured
Queues began forming in the early hours of the morning outside the Apple Store in Newcastle's Eldon Square, pictured
Shoppers in Glasgow city centre queued round the block on Buchanan Street, pictured for the launch of the new Apple iPhone 5S and 5C.
Shoppers in Glasgow city centre queued round the block on Buchanan Street, pictured for the launch of the new Apple iPhone 5S and 5C. Elewhere, the Intu Braehead shopping centre near Glasgow opened up especially for the new iPhone launch
Noah Green, 17, was the first in the queue, having only left his vigil to shower at a nearby gym since setting up camp outside the store at 4pm on Monday.
Emerging from the store 20 minutes after the doors opened to rapturous applause, Noah, clutching a limited edition gold device, said: 'It's the best feeling in the world.
'I'm the first in the United Kingdom and I have the best phone.'
The teenager said he turned down offers of up to £5,000 for his prime spot in the queue, saying he would only consider giving up his place for £10,000.
Rows of Apple iPhone 5C smartphones await customers at the Apple Store in Berlin.
Rows of Apple iPhone 5C smartphones await customers at the Apple Store in Berlin. Hundreds of customers waited outside the German store in the rain to be among the first to buy the new phones
Fans across the country were given tickets in order to reserve particular models.
Fans across the country were given tickets in order to guarantee the particular models. One Apple customer at the Bullring shopping centre in Birmingham shows his tickets, pictured, which have reserved him two iPhone 5S models with 16GB and 64GB storage
Serial queuer Green was one of seven huddled together outside the front on the store and said about his fellow Apple fans: 'We all know each other from previous years and launches. 
'This is my eighth launch, I've been here for new phones and iPads and pretty much always been in the top ten of the queue.'
Last year, Green sold his spot at the head of the line for the latest iPad for £300.
Today's launch was being used as a marketing opportunity for other companies, with representatives from insurance firms  selling cover, coffee shops providing tea and coffee and pizza chains feeding the crowds.
Green said: 'We have been brought food and drinks, even clothing. It's helped to pass the time chilling out. It's been fun but I want my new phone now.'

TESTS FIND THE IPHONE 5S TO BE 'ALMOST INDESTRUCTIBLE'


The very first iPhone 5S sold in the UK was dropped 6ft onto the pavement in a breakability test - and found to be 'almost indestructible'.
The Phone Terminator machine, which tests the breakability of gadgets, was put into action by bosses at SquareTrade phone insurance firm. 
SquareTrade's Phone Terminator has been used previously to test the durability of handsets such as the Samsung Galaxy S4, its predecessor the S3 and the iPhone 5.
A worker for Square Trade, a mobile phone warranties company, inserts a new Apple iPhone into the 'Phone Terminator', to test the two new offerings from Apple outside the Appple store in Covent Garden in London.
The machine gives each handset a breakability score after putting them through a series of tests including dropping them and submerging them in water.
Current breakability scores* for existing phones: 
iPhone 5: Breakability score: 5
Samsung Galaxy S4: Breakability score: 7
Samsung S3: Breakability score: 6.5 
*1 is the best at surviving accidental damage and 10 is the worst.
However, when technology site Android Authority put the two handsets through their paces, the iPhone 5C shattered but the iPhone 5S didn't. 
Apple's previous launches have seen people pay a huge premium outside the store on phones bought by the early birds on their way out, but this year Noah said he would be keeping one for himself and selling the other to a friend.
According to gadget insurer Protect Your Bubble who surveyed the London queue, 93 per cent of fans were waiting for the high-end iPhone 5S model. 
While 56 per cent of customers didn't think the iPhone 5C was good value for money. 
One customer from Essex who was 2,700th in the Regent Street queue admitted he sold his iPhone 5 for £350 to cover the cost of the iPhone 5S.
Brother and sister Olly and Charlotte McIlroy, from Bexleyheath, spent more than £2,000 on four handsets for their family. The pair joined the queue on Thursday night.
The London queue snaked around a packed Regent's Park, with several people carrying tents and energy drinks as they made their way towards the store from 8am.
Stocks of Apple's new iPhone 5S sold out by 7.50am at the Apple store in Cardiff, pictured.
Stocks of Apple's new iPhone 5S sold out by 7.50am at the Apple store in Cardiff, pictured. Customers were given tickets with some arriving as early as 1am at the Welsh shopping centre in the hope of getting the new iPhone 5S or 5C
Customers are cheered on and high-fived by Apple staff as they enter the Covent Garden store in London
Customers were cheered on and high-fived by Apple staff as they enter the Covent Garden store in London

THE IPHONE 5S AND 5S SPECIFICATIONS

Rows of Apple iPhone 5C smartphones await customers at the Apple Store in Berlin.

iPhone 5C

The handset will cost £469 for 16GB and £549 for 32GB when bought outright.
4-inch Retina display.
Five colours: green, blue, yellow, pink, white.
A6 processor - same as the iPhone 5.
The battery is slightly larger than it was on the iPhone 5.
It has the same 8-megapixel rear camera and a new FaceTime HD camera as the iPhone 5.
Supports 'more LTE bands than any other smartphone in the world.' 
Dual-band Wi-Fi, Bluetooth 4.0
A sales assistant arranges new Apple iPhone 5S smartphones at the Berlin Apple Store on the first day of sales on September 20, 2013 in Berlin, Germany

iPhone 5S

The 16GB handset will cost £549 up to £709 for 64GB.
4-inch Retina display.
Three colours: gold, silver and slate.
A7 chip is twice as fast as the iPhone 5.
Built-in fingerprint scanner with Touch ID  unlocks the phone and can be used for purchases.
Dual-flash LED camera with 28-megapixel panoramic photos.
The iPhone 5S has 10 hours of talk time and 250 hours of standby.

Australian Jimmy Gunawan, 33, literally jumped for joy as he exited Apple's Sydney flagship store at 8am local time after becoming the world's first owner of the latest iPhone.
The 33-year-old forked out $2,000 (£1,170) Australian dollars for two new iPhone 5S - one for himself and one for his mother in Indonesia.
He told the Daily Telegraph: 'I won't be sending it to her until the next Chinese New Year, next January. I've been queuing up since 12pm, but I don't mind.'
Fans of the iPhone 5S had been camping outside Apple's flagship Fifth Avenue store in New York City and London's Regent Street store since Monday.
A customer (right) buying the phone is greeted by employees in the packed shop
Fans of the iPhone 5S had been camping outside Apple's flagship Fifth Avenue store in New York City since Monday. A customer (right) buying the phone is greeted by employees in the packed shop
Brian Ceballo was the first person to buy an iPhone 5S in New York
Brian Ceballo, who waited outside the Fifth Avenue Apple store for two weeks, walks out of the store after being the first person to buy an iPhone 5S in New York City. The queue outside Apple's New York flagship store was reportedly the longest ever at a launch
Alejandro de Rosa poses with his new Apple iPhone 5s phone
Alejandro de Rosa (right) and Melisa Racineti (left) of Buenos Aires, Argentina pose with their new Apple iPhone 5s phones with Apple employee Jay at the Apple Store on Fifth Avenue in New York
Gene Munster, who has been keeping tabs on the length of queues at Apple launches since 2008, said the queue outside Apple's New York flagship store was the longest ever at a launch.
He said it was 1,417 people long at 8am this morning, beating the next longest queue, which saw 1,300 people wait in line for the launch of the iPhone 4, TechCrunch reported.
Some people erected makeshift tents while others brought rugs and sleeping bags.
Jesse Green from London jumps as he leaves with his iPhone 5S after being the second person to enter the Apple store in Covent Garden
Jesse Green from London jumps as he leaves with his iPhone 5S after being the second person to enter the Apple store in Covent Garden
Worth the wait: Hundreds of people line up outside an Apple store in Sydney, Australia, to purchase the new iPhone
Worth the wait: Hundreds of people line up outside an Apple store in Sydney, Australia, to purchase the new iPhone
Jumping for joy: Jimmy Gunawan shows off his two new iPhone after being the first person to purchase the newly released iPhone 5s at 8am in Sydney, Australia
Jumping for joy: Jimmy Gunawan shows off his two new iPhone after being the first person to purchase the newly released iPhone 5s at 8am in Sydney, Australia
But despite the discomfort of camping on the streets, many admit they would be willing to sell their prime spots in the queue for the right price. 
Some believe they will be able to demand four figure sums to give up their place as the iPhone 5S - the more expensive of the two new models being released - was not made available for pre-order.

THE MAJOR NETWORK'S LOWEST IPHONE 5C MONTHLY DEALS AT A GLANCE*

Network operatorMonthly CostPhone Cost4G-ready?
4GEE£26£189.99Yes
O2£32£29.99Yes - although not at launch
Orange£32£69.99No
T-Mobile£32£89.99No
Three£37£49Yes - from December
Vodafone£29£249No
Vodafone Red£42£19Yes
*All prices shown are for the 16GB handset on a 24-month contract
Meanwhile Intu Braehead shopping centre near Glasgow, Scotland, opened up especially for the new iPhone launch. 
Marketing manager for Intu Braehead, Lydia Brown said: 'We normally close at 9pm on a Thursday. But we re-opened our doors at midnight to let people queue outside the Apple Store in the warmth and comfort of the mall. 
'Apple is such an iconic brand and there is always a massive interest in a new version of the iPhone that we are expecting hundreds of people to be waiting for the Apple Store to open at 8am.
Big event: Staff cheer as customers are let into Apple's flagship store in Sydney's central business district this morning
Big event: Staff cheer as customers are let into Apple's flagship store in Sydney's central business district this morning
Staggered: As the new iPhone 5s and iPhone 5c were released at 8am local time around the world, the store in Sydney, Australia, was the first to start selling them this morning
Staggered: As the new iPhone 5s and iPhone 5c were released at 8am local time around the world, the store in Sydney, Australia, was the first to start selling them this morning
First in line: The first customer to purchase an iPhone 5S in Tokyo celebrates as he leaves an Apple store in the city's Store Ginza shopping district
First in line: The first customer to purchase an iPhone 5S in Tokyo celebrates as he leaves an Apple store in the city's Store Ginza shopping district
'We have brought extra staff in to the mall overnight and I expect the excitement will grow as the Apple Store opening time comes closer and the customers can be some of the first in the country to get their hands on the new iPhone.'
The iPhone 5S device, said to be twice as fast as its predecessor, sets itself apart from its competitors with its Touch ID feature. This allows users to unlock their phone and purchase apps with the touch of a finger.
The 5S - which comes in gold, silver or 'space' grey - is made of high-grade aluminum.
Customers line up to buy the latest Apple smart phones outside an Apple Store at Xidan Street in Beijing. It is the first time Apple has made the handsets available from launch in China as it attempts to reach emerging markets
Customers line up to buy the latest Apple smart phones outside an Apple Store at Xidan Street in Beijing. It is the first time Apple has made the handsets available from launch in China as it attempts to reach emerging markets
Superfan: An Apple fan poses with his new iPhone 5S after queuing outside Apple's store at Tokyo's Ginza shopping district since September 10
Superfan: An Apple fan poses with his new iPhone 5S after queuing outside Apple's store at Tokyo's Ginza shopping district since September 10
It will be available through EE, O2, Three, Carphone Warehouse and Phones4u, priced at £549 (16GB), £629 (32GB) and £709 (64GB).
The iPhone 5C, the more budget-friendly of the two models, was available for pre-order last Friday but Apple has yet to release sales figures for the phone.
The 5C - introduced at a time when the tech giant arguably faces stiffer competition than ever before - represents Apple's first move away from the high-end market.
Tokyo Apple customers wait in fancy dress at the KDDI design studio in the Japanese city's Harajuku section
Tokyo Apple customers wait in fancy dress at the KDDI design studio in the Japanese city's Harajuku section
Snap: Photographers take pictures of Apple's new iPhones on display during a ceremony to mark the first day sales of the latest iPhones 5C and 5S at a store in Tokyo this morning
Snap: Photographers take pictures of Apple's new iPhones on display during a ceremony to mark the first day sales of the latest iPhones 5C and 5S at a store in Tokyo this morning
Queues around the world: An iPhone fan waits outside an Apple Store to purchase Apple's new iPhone 5S at Tokyo's Ginza shopping district today
Queues around the world: An iPhone fan waits outside an Apple Store to purchase Apple's new iPhone 5S at Tokyo's Ginza shopping district today
A worker for Square Trade, a mobile phone warranties company, puts the the new Apple iPhones to the test using the Phone Terminator.
A worker for Square Trade, a mobile phone warranties company, puts the the new Apple iPhones to the test using the Phone Terminator. After dropping them twice both new models remained scratched, slightly damaged but still working
Apple usually releases its advance order figures the Monday after a device becomes available for preorder so the lack of any announcement on Monday prompted some to wonder if the iPhone 5C didn't live up to past performance.
An unnamed source told Reuters that demand for the plastic handset has been disappointing, leading to suggestions Apple's bubble with consumers may have burst.
Meanwhile, the high-end iPhone 5S disappointed Wall Street and revived fears that Apple's most innovative days may be behind it. The phone has a fingerprint scanner to improve security, but analysts said that was not likely to be enough to make the iPhone 5S a sure win in the crowded smartphone market.
'There was nothing transformational announced. It has the fingerprint scan and new colours, but bigger features, like different screen sizes, don't seem to be at the ready. 
'This was less than expected from a company that has a reputation for surprising with a killer product or strategy,' Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia said.
Employees from mobile phone warranties firm, Square Trade, took their Phone Terminator machine to the Covent Garden store in London. 
The machine is designed to drop the handsets from the same height and test their durability.
After being dropped twice, both new models were  scratched, slightly damaged but still worked. 
The iPhone 5 was criticised by customers for being easily damaged because it was made of glass and aluminium.
For sale: An employee shows off a new Apple iPhone 5C at a Verizon store in Orem, Utah, yesterday
For sale: An employee shows off a new Apple iPhone 5C at a Verizon store in Orem, Utah, yesterday
The launch comes after thousands of customers struggled to download its new operating system for iPhones and iPads.
Apple claims the iOS7 software is so advanced it effectively turns existing iPhones and iPads into new devices. However, many of those who tried to download it simply received an error message.
The iOS 7 update was made available to download from 6pm UK time (1pm EST) on Wednesday, but no sooner had it been made available, users started to complain about experiencing difficulties downloading it.
The most significant security update on iOS 7 is the new Activation Lock feature.
The most significant security update on iOS 7 is the new Activation Lock feature, pictured. Previous handsets let you remotely find, lock, wipe or send texts to a phone if it was stolen. The Activation Lock now means these can't be disabled without a user's Apple ID and password
Common error messages received by users included: ‘Software Update Unavailable,’ ‘Software Update Failed’ and ‘An error occurred downloading iOS 7.0.’
Thousands of frustrated Apple customers took to Twitter and other social-networking sites to voice their frustrations over the tech giant’s newly-launched mobile software.
The launch of iOS 7 is the biggest change to iOS since the iPhone launched and judging from reaction on social media, it seems the company’s servers haven’t been able to handle the huge surge in traffic.
Even those users who managed to download and activate the new software weren’t happy. Many weren’t impressed by the mammoth 3.1GB requirement that the upgrade needed.

FED UP WITH iOS 7? HERE'S HOW TO DOWNGRADE TO THE OLD VERSION

Disgruntled iOS 7 users can still downgrade to iOS 6. 
9TO5mac have created a step-by-step guide for customers unhappy with their new-look phones. 
Firstly it states users should check whether they can still downgrade as Apple usually stops approving old versions as soon as an update is released. 
Currently, iOS 6.1.3 is still being approved. To check visit here.
Users should click on their device. If there is a green mark next to it, it is still available. If not, Apple has stopped approving the version. 
If still available, the user should then click on the link in the Download column on the same page to get the IPSW for the desired iOS. 
Next, the user should open iTunes, plug in the device and hold down the Option key and click the restore button. 
Apple servers with then be asked to approve the request and if approved the phone will be downgraded to iOS 6. 
Users must then re-sync their media and apps. 
However, 9TO5mac warns downgrading could mean a few headaches including not being able to use newer Apps and needing to back up the device again.

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