Why Does Apple Offer Free Engraving?

Original Story here

While it is all speculation, given Apple's history and its ability to want to control everything including how you use their product (not to mention sucking every penny out of you), I would bet that it is not in the best interest of their consumers. The original article and ensuing comments points out couple of reasons

• The real reason Apple offers free engraving is to weaken the secondary market....By offering free engraving, Apple makes these used devices less valuable to other consumers. Who wants a weird engraving chosen by the previous owner on his iP*d? The more iP*ds are engraved, the smaller (or at least less valuable) the secondary market is, and the more profitable it is to be the durable-goods monopolist, Apple.
• Engraved products are not returnable
• It causes people to buy the products thru the Apple store, which is more economical for Apple than when people buy products thru third party retailers. It is that simple. Apple gets the retail price of the product when it sells rather than the wholesale price

I made my prediction/bet during last christmas (2009) that 2010 would be the best year for Apple and I still stand by it. 2011 would be the beginning of end of Apple's meteoric rise. Don't expect the stock to drop on January 1st 2011. It would be a gradual drop. Andriod surpassing iPhone (which is their biggest money maker) in terms of daily activations is one proof and its dominance of iPad will be challenged by many products that will be out between now and 1st quarter of 2011.

Perhaps I should do a put option on Apple stock and be rich instead of bitching!