Scalpers Hog Lines for iPhone 5 at Some Apple Stores

Scalpers have been hogging some iPhone 5 lines at Apple Stores in the U.S. A reader report from the Rockingham Park Apple Store in New Hampshire said resellers were buying iPhones two at a time with stacks of Apple gift cards, while on the other side of the country, Forbes reported that line sitters were selling their spots to real customers in Apple's back yard for up to $150 a pop.

Rockingham Park Apple Store

Rockingham Park Apple Store, courtesy of Alexander
(Click the image for a larger version)

A reader named Alexander sent a report from the Rockingham Park Apple Store in Salem, New Hampshire, where the lines were some of the longest we've seen for the iPhone 5 launch. According to Alexander, however, many of those in line were mules buying two new iPhones at the full retail price for resellers, and then getting back in line to do it again.

Rockingham Park Apple Store

Rockingham Park Apple Store, courtesy of Alexander
(Click the image for a larger version)

"They're paying with gift cards," he told The Mac Observer after witnessing the transactions. "They have stacks upon stacks of them. If they aren't burning a subsidy and buy at the full carrier (not unlocked) price they don't need to activate them in-store."

He added, "I really wish Apple would require the phones to be activated in-store like they used to. The line experience where fellow fans gather and celebrate together has been lost. It's a real shame."

Rockingham Park Apple Store

The Night Before at Rockingham Park, courtesy of Alexander
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Rockingham Park Apple Store

Getting Near the Front in Rockingham Park, courtesy of Alexander

Forbes reported that line sitters were scalping their spots for as much as US$150 a pop to latecomers willing to pay to not wait. This was in Apple's downtown Palo Alto Apple Store, in the company's back yard.

“I was asked for $150,” one customer told the magazine. “I offered her $100, which she debated for a while. When I showed her the $100 in cash, she accepted.”

The customer added that others were doing the same thing, and an Apple employee said that this happened every year at the store.

Dadeland Apple Store

The Dadeland Apple Store in Miami, FL put its line in the garage
Photo by TMO reader David

It's not the case at every store, however. Customers in line in Glasgow, Scotland appeared to be dominated by customers looking to buy iPhones for themselves. Additional reports from TMO readers in Florida (above) and Las Vegas (below) didn't include any anecdotes of scalpers or mules shopping for resellers.

Fashion Show Mall Apple Store

Outside the Fashion Show Mall Apple Store in Las Vegas
Photo by TMO reader Brian