iPad 2 is out!

You might have heard about the huge iPad 2 launch in China. The one that had created massive lines in Shanghai and Beijing, and even an incident of laowai rage. The lines were reported to be mostly made up of scalpers, capitalizing on the certain scarcity of this hot item. So what kind of profits do the scalpers get for waiting in this line for hours and hours?

This is what my PTSD nighmares look like

I am happy to report that there is no scarcity on Taobao. If you want an iPad 2, you will pay about a 300rmb premium over the list price for the cheapest model, an 8% margin.  Apple’s mainland China MSRP on the 16GB model without 3G coverage is 3688rmb, compared to 3998rmb on Taobao.  (You can also get a Hong Kong model for slightly cheaper: 3820rmb.)

Rich and impatient

This iPad hoarding is a dirty twist on supply and demand.  But it seems to be working out, as the biggest shops sell them by the hundreds. I could sidestep these scoundrels by waiting until the official Apple store has fresh stock. But I am a rich SOB, and an impatient one. And you know what else? I’m worth it.

Are they here to stay? 

A while back we reported on the rash of hacked iTunes gift cards that had appeared on Taobao. These were $200 USD cards selling for as little as $0.25. It was total chaos! Then Taobao cleaned it up as best they could, and the hullabaloo settled down. But now, they have returned.

It seemed like iTunes would change the gift card algorithm that had been hacked to a fresh one, and that these cheap gift cards would disappear for good. Not so! It seems that Apple hasn’t invalidated the old codes, nor has it figured out how to change their algorithm without messing up all the legit cards that are already out there. 

iTunes Gift Cards have returned to Taobao, and are still selling strong. Right now there about 1,000 listings for the gift cards, all selling at very low prices. In such a crowded market, Sellers have had to differentiate themselves. For example, this Taobao seller has taken dog show photos to represent their brand. Adorable!

While this guy has chosen Obama to represent his iTunes Gift Certificates, with an open call to foreigners. But is that what Barack would do? Heck no! He wrote a book about honesty, or something. 

Chinese people seem to be very good at cracking these gift code algorithms. You can also find Xbox Live points and Playstation Network gift cards at a fraction of their face value. How do they do it!?

Update: iTunes stuff is back

It seems like those hacked iTunes gift cards were mostly removed from Taobao in a system-wide sweep. Well, mostly except for some rogue listings which are quickly catching sales before they are found and shut down. At time of writing, there was a sprint of listings all from the same Seller. 

He must type really fast. Once Taobao finds these, they will likely disappear too. 

There are other listings selling an iTunes store account number for the US or for China.  These will help you if you are trying to buy some region-locked iPhone applications. or something like that. Remember, if it says 帐号, it is an account number!

If you still want to dig around Taobao for iTunes stuff, you will run across these eyeglasses. 

Or if you are interested in owning some rare collectibles, try these collectible iTunes branded Coca-Cola cans from Italy, which will cost you 200rmb (like $25) for some reason.

Chinese hackers threatening US interests!

I’ve been seeing a lot of chatter on Twitter about iTunes gift cards on Taobao. Apparently some Chinese hackers cracked the iTunes gift-card algorithm, and were able to generate codes themselves. These sold and now continue to sell for pennies on the dollar – $200 worth of iTunes credit is available for less than $3.

There was similar Twitter chatter about a month ago, when these cheap cards first surfaced. But that chatter abruptly ended when people discovered that their cards did not work. We’re not sure what the current status is – if they do or don’t work.

Apple is likely hot on the case looking to close this loophole, if it is not already closed. One commenter speculated that they would invalidate ALL their gift cards, asking those who purchased real ones to trade them in, offering slightly more money for the trouble.

If you want to pull some Apple-related mischief, we encourage you instead to create your own DIY MacBook for Less than 3000rmb. Now that’s a steal! More good info on the iTunes gift card hoodwinkery at AppleInsider.

Turn a Dell into a MacBook 

MacBooks are awesome, but the thought of forking over more than 10,000rmb for the low-end model is just too depressing. But with a little hacking, you can DIY your own ‘hackintosh’ out of a 3,000rmb Dell ultraportable laptop.

What is a hackintosh? It means installing Mac OS on a non-Apple machine. Only certain PC models’ hardware are compatible with Mac OS, and the Dell Mini 9 is reported to be ideal for the conversion. There is a step-by-step tutorial to handling the Mini 9 conversion via Gizmodo. And here is some more info on it. These guides say that the steps to convert the machine are simple and easy to follow. 

First off, these things are tiny. Aesthetically, this little laptop is very similar to something in the MacBook line;  it’s got a nice glossy case. But it is much smaller than anything Apple offers and should be excellent as an ultraportable option. They come in black and white, so be sure to make your preference clear to the Taobao Seller before you buy. Hard drives are also small, at 4, 8, or 16gb. You will need 16gb for the hack to work.

There are several Sellers on Taobao who offer the seven-day unconditional refund guarantee on the Mini 9. I think this is a good idea, as it will give you an easy out if anything just doesn’t feel right. When you get it, test the hell out of it. You won’t have to worry about coverage past 7 days. Because once you hack the OS, you probably forgo any extended warranty. 

Dell Mini 9 – as low as 2900rmb

(link goes to search page, results may vary over time)