Sears Deals With Customer Anger After iPad Pricing Mistake

GSM On Sale, a third party seller on Sears' e-commerce Web site, typically sells the 16-GB Wi-Fi-only iPad 2 for $744.99, the Digital Life blog on Today.com reported Sunday. The seller mislabeled the price for both the 16-GB and 32-GB Wi-Fi versions of the iPad 2, listing the former at $69 and the latter at $179.

Sears took to their Facebook page on Friday to clarify the mistake, and to make it clear that $69 iPads are the stuff of dreams.

"Unfortunately, today one of the Marketplace third party sellers told us that they mistakenly posted incorrect pricing on two Apple iPad models on the Marketplace portion of the website," the company said on Facebook. "If you purchased either of these products recently, your order has been cancelled and your account will be credited. We apologize for any inconvenience this may have caused."

The pricing snafu and Sears decision to cancel the orders were met with angry customers, who aired their grievances using social media.

"[It] does not matter who screwed up the price. It was there for the world to see and they should honor something. I feel it is false advertisement and they have my info and my money as well," said Facebook user Chris Parrish, in a comment on Sunday.

As of this writing, many of the 347 comments responding to Sears' Facebook post express support for Sears' decision. Even some customers who claim to have purchased the mispriced iPad indicate an understanding of the situation, but maintain that they are frustrated by the refund process.

"I know it was a price mistake, but don't take my money out as soon as I click submit and then promise to have it in my account within 24 hours and 4 days later it is still not in there," said Facebook user Ellen Loyd in a comment on Monday.

According to a spokesperson for Sears Holding Corp., all iPad 2 returns resulting from the mistake have been processed, and the timing of the refund now depends on the financial institution used to make the purchase. There are no GSM On Sale products listed on the Sears Web site, and the seller's own Web site has a "closed for maintenance" message on the homepage as of Monday.

Customer outrage over the pricing mixup reflects the ongoing interest in the iPad tablet. Keeping inventory in step with demand has been a struggle for Apple since the launch of the original iPad in March 2010. Within a few days of launching the iPad 2 in March 2011, the tablet had sold out in Australia and the U.K.

iPad sales in Q2 fell below expectations, in part because of the backlog, but analysts are still bullish on the tablet market moving forward and Apple is expected to continue leading the pack.

"Although media tablet sales were not as high as expected in 1Q11 due to slower consumer demand, overall economic conditions, and supply-chain constraints, we believe with the entrance of competitive new devices in second half of 2011, the market will sell close to 53 million units for the year and continue to grow long-term," said Jennifer Song, a research analyst for IDC, in a statement earlier this month.