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Apple repeals no-cash policy, gives woman free iPad for her troubles

After a San Francisco, Calif., news report highlighted a woman who was denied the ability to purchase an iPad with cash, Apple has reversed its policy and rewarded the woman by giving her the hardware for free.

Diane Campbell lives on a fixed income, and saved up money to buy an iPad from an Apple store in San Francisco. But when she attempted to purchase the device with cash, she was denied, based on an Apple policy designed to ensure the product is fairly distributed as the hardware is in short supply.

"Mr. Jobs, give a sister a break, OK?" she told the KGO-TV San Francisco news station. "I'm not going to go sell my iPad."

After the station featured Campbell's story, Apple responded. Ron Johnson, Apple's senior vice president of retail, spoke with the newscast to reveal that Apple would no longer continue its credit-only policy.

"It came to our attention that Diane, through your story was very interested in buying an iPad with cash," Johnson said. "And we made a decision today to change that."

Apple's original intent was to make sure that its policy restricting iPad preorders to two per customer was properly enforced. Apple has faced strong demand and limited supply of the iPad since it first launched in the U.S. on April 3.

Now, anyone can pay for an iPad with cash, as long as they set up their Apple account at the store. The iPad must first be connected to a PC or Mac with iTunes to be activated regardless.

Apple also sent two employees to Campbell's home to personally deliver her an iPad, free of charge. She excitedly thanked Apple co-founder Steve Jobs.

"I am just so excited," she said to the ABC station holding her brand new iPad enclosed in Apple's official case. "Words cannot explain right now."