GameStop hopes to stop financial slide, looks to sell refurbished iOS devices

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Date: Tuesday, August 14th, 2012, 06:09
Category: iPad, iPhone, iPod, News, retail

Ok, you might not walk into GameStop that often unless you’re a gamer or parent of a gamer.

This might change in the future, as the struggling retailer has announced plans to embrace the iOS as a gaming platform. Per SFGate, the company began a program last fall of buying up used iPhones, iPads, and iPod touches from consumers, then sending them to a “Refurbishment Operations Center” in Texas where the devices are cleaned up and repaired. Once they’re in nice working order, the devices are returned to GameStop stores where they’re sold at a decent markup. The items are also being sold on GameStop’s web site.

Analyst Michael Pachter of Wedbush Securities thinks that the Apple refurb business could be a gold mine for GameStop. Even if GameStop resells just 5 percent of the 230 million Apple devices estimated to be in the hands of U.S. consumers, it could bring in about US$1 billion in new revenue in the next few years.

Pachter also thinks GameStop could make a killing by selling prepaid phone plans with those used iPhones, “since a lot of their customers are teenagers with money to spend but no credit to get a regular phone plan.”

Stay tuned for additional details as they become available.

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