Compaq iPaq goes for big bucks on eBay

Published: 23 July 2000 y., Sunday
Like other popular technology gadgets, about the only place Compaq Computer's new 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, have also fetched auction prices well above list. The iPaq, unveiled in April along with devices from Hewlett-Packard and Casio, is 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--many of whom deem it the coolest of the Pocket PCs. As reports of devices trickling into retailers have surfaced, frustrated buyers are turning to the only outlet for the product: online auctions. The iPaq is selling for as high as $1,000 on eBay 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. Currently, most online retailers say they are out of stock. So buyers are turning to non-retail outlets like eBay, where lucky owners of the iPaq are taking advantage of the situation. "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."
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