Apple Overstocked on iPods and Macs?

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)

Appleinsider cites analyst reports (http://www.appleinsider.com/article.php?id=1106) indicating that iPod and Mac stocks are the highest they've been in a year.

In fact, for the first time in over a year, there is enough stock of all of Apple's major products -- both Mac and iPod -- that even the company's often-neglected value added retailers can get most products on demand. The only exceptions appear to be the new iMac G5 and the Special Edition U-2 iPod, both of which appear to be lingering just below a supply and demand balance.

[masterapple04]

Sounds like Apple has finally got their act together! :cool:

[wrldwzrd89]

What are the sales like? Are they up, down, or the same? If they're down, this news isn't terribly impressive, but if they're up this is amazing news. If they're the same...it's good but not great.

[rikers_mailbox]

First post - woot! Sounds like Apple has finally got their act together! :cool:

or. . .

a) Sales have fallen off this quarter. Uncool.

b) They are building up supplies in expectation of high demand due to heavy marketing.

I don't know which to believe. :rolleyes:

[dotdotdot]

You would think the iMac G5 would have the most demand...

[Freg3000]

Yeah this seems like a bad thing to me...lots of inventory = no updates at WWDC?

[swissmann]

What are the sales like? Are they up, down, or the same? If they're down, this news isn't terribly impressive, but if they're up this is amazing news. If they're the same...it's good but not great.

Well said. It would be nice to not play the waiting game when ordering a product however a good supply of what they have indicates that updates aren't on their way. Here's to hoping for something completely new.

[SpaceMagic]

Yeah this seems like a bad thing to me...lots of inventory = no updates at WWDC?

All these products have been updated recently and wont be needing updating at WWDC. I'm just hoping for a tablet iBook...

[Lacero]

Any guesses as to whether the iPod will retain "#1 wishlist" status this upcoming Christmas season? Last year, I believe it was the iPod mini, this year, it very much could be the iPod shuffle.

[aldo]

You would think the iMac G5 would have the most demand...

Why? It's extremely expensive and lacks significantly compared to its PC counterparts.

If you are going to spend $1000+ on a computer, I think the vast majority are going to be fairly clued up on what they are buying. They will look at the specs and see they lack majorly compared to Dell, HP, or Mr. Whitebox.

Don't say the software is better because frankly people don't trust bundled software anymore after years of crap from the PC makers. They need to be educated on this, but they are simply not.

I think Apple needs to cut the PowerMac prices significantly, and perhaps the iMac's soon.

What I do think would be a very good idea to clear out all this inventory they have is a '$100' iPod deal. Buy an iMac, get an iPod for $100. It'd work better than a simple price cut of $150 (the 'loss' in terms of the iPod sticker) and would be a great upsell (Welcome to the Apple Store. You want an iPod? Well.. take a look at this great deal: shows a great iMac with an iPod for less than half price).

Well, I don't know. Seems like a good idea to me ;).

[dontmatter]

Well, this means either-

A. Apple isn't selling that much, or

B. Apple decided they want maximum availibility of their products.

Given the lack of B through apple history, I'm doubtful.

Whichever the cause, this can be said for certain-ideal for any company is to produce exactly enough at exactly the right time. Excess product means, be it through growth that's not there, or shrinkage, that you thought times would be better than they are.

No?

So I vote bad on this, because apple's plan was, by simple logic, either to have enough, but no excess, or to have to few, and so keep hype and apple love going, and minimize the risk, too. And, buisness isn't going according to plan. Hence, not good.

[Tamer Brad]

The U2 iPod was a bad idea in the first place, really. But that's just my opinion. :x

[MikeBike]

Why? It's extremely expensive and lacks significantly compared to its PC counterparts.

If you are going to spend $1000+ on a computer, I think the vast majority are going to be fairly clued up on what they are buying. They will look at the specs and see they lack majorly compared to Dell, HP, or Mr. Whitebox.

Don't say the software is better because frankly people don't trust bundled software anymore after years of crap from the PC makers. They need to be educated on this, but they are simply not.

I think Apple needs to cut the PowerMac prices significantly, and perhaps the iMac's soon.

What I do think would be a very good idea to clear out all this inventory they have is a '$100' iPod deal. Buy an iMac, get an iPod for $100. It'd work better than a simple price cut of $150 (the 'loss' in terms of the iPod sticker) and would be a great upsell (Welcome to the Apple Store. You want an iPod? Well.. take a look at this great deal: shows a great iMac with an iPod for less than half price).

Well, I don't know. Seems like a good idea to me ;).


Aldo, aldo aldo, what did you just do buy Dell StocK?

If you're considering a Mac then there's No Comparision to a PC.
It's the Hardware and the SOFTWARE. You keep forgetting.
Plus, the slow recovery from Paranora. No Virus's no spyware no problems.

Really, you've got to do better Trolling than that.

[MikeBike]

Aldo, aldo aldo, what did you just do buy Dell StocK?

If you're considering a Mac then there's No Comparision to a PC.
It's the Hardware and the SOFTWARE. You keep forgetting.
Plus, the slow recovery from Paranora. No Virus's no spyware no problems.

Really, you've got to do better Trolling than that.


Aldo, Aldo, Aldo, like it or not This is the Issue:
http://www.theregister.com/2005/06/02/virus_exposure_stats/
It's the Software and the Hardware, as in Not Able to Execute an .exe.


:)

[BWhaler]

Ever item in the Apple store is showing same day delivery.

This does not bode well for WWDC.

I suspect there will be some very disappointed folks this time next week, myself included.

[MikeBike]

lus, the slow recovery from Paranora.

Sorry: Paranoia, Paranoia, Paranoia.
Free from Paranoia.
:eek:

[ja0912]

Ever item in the Apple store is showing same day delivery.

This does not bode well for WWDC.

I suspect there will be some very disappointed folks this time next week, myself included.

I happen to think this means there will be some very surprised and happy folks next week. The ONLY product due (not updated in the last 6 months) for an update are iBooks, but they really have no where to go with Powerbooks being what they are.

Signs that all current products are in good supply, to me, means a good chance for brand new products.

I personally find that prospect the most exciting.

[Gherkin]

I happen to think this means there will be some very surprised and happy folks next week. The ONLY product due (not updated in the last 6 months) for an update are iBooks, but they really have no where to go with Powerbooks being what they are.

Signs that all current products are in good supply, to me, means a good chance for brand new products.

I personally find that prospect the most exciting.

Honestly. Since everything is in supply, the only thing possible is a brand new product. Bring it on.

[freiheit]

It's the Software and the Hardware, as in Not Able to Execute an .exe.

Considering the ridiculous rate that worms and viruses spread through email attachments that people open without thinking of the security risks, maybe not being able to execute an .exe isn't a bad thing.

[Daveway]

Why? It's extremely expensive and lacks significantly compared to its PC counterparts.

If you are going to spend $1000+ on a computer, I think the vast majority are going to be fairly clued up on what they are buying. They will look at the specs and see they lack majorly compared to Dell, HP, or Mr. Whitebox.




Wrong. Go build a system at Dell and you'll soon find they're the same price. ;)

O and this is not good news, this is bad. When a company has an overstock that means they planned ahead to much and the sales just aren't there. It also means that the company may have to make up for the money lost on unsold systems. Watch the stock ticker tomorrow and you'll see what I mean if the media gets hold of this.

[dejo]

Man, lots of complaints in the past that Apple needs to fix their supply problems (especially before a media blitz) and now that it seems they've done that, it's still not good? They just can't win...

[Lancetx]

Man, lots of complaints in the past that Apple needs to fix their supply problems (especially before a media blitz) and now that it seems they've done that, it's still not good? They just can't win...

Agreed. I'd much rather see a healthy supply in the channel than weeks of waiting for a product. And perhaps this rumored big media blitz is indeed coming very soon and that's why they've allowed their inventories to increase.

[fox2005]

Wrong. Go build a system at Dell and you'll soon find they're the same price. ;)

O and this is not good news, this is bad. When a company has an overstock that means they planned ahead to much and the sales just aren't there. It also means that the company may have to make up for the money lost on unsold systems. Watch the stock ticker tomorrow and you'll see what I mean if the media gets hold of this.


I remember reading last week of apple supply problems and its failure to keep up with the market or beeing to conservative with their predictions... Now its totally the other way...

c'mon people can just we have a 1 month intermediate spot. They revamped their manufacturing process, added manufacturing plant, increase their selling points, now they are delivering as they should have to from the begining...

mabe add a little slow sales quarter...

[Fender2112]

I personally think this means people are just waiting for WWDC before making purchases. If I were in the market for a new toy, I would wait to see what the other kids are playing with. :D

[Willy S]

It´s expensive to have much of computers in stock, so they might decide to lower prices to stimulate sales. Apple will certainly not come with any updates when they have piles of the previous ones.

I already have an eMac in my cart and wonder if Apple in Europe is going to call me and offer my a discount. :p

[runninmac]

Yeah this seems like a bad thing to me...lots of inventory = no updates at WWDC?

Yeah not good

AND.. im almost positive its NOT good to have high invintory besides my dad being a finacual planer and asking him about it also I remeber in steve jobs keynote a few years ago (just resently watched it) he said he was proud that they had a low inventory compared to the other comp. makers. So the iMac G5 is actually selling good becasue the demand is up. Sorry if this doesn't make any sense I havn't gotten alot of sleep lately and its 10:30 here.

[Freg3000]

I personally think this means people are just waiting for WWDC before making purchases. If I were in the market for a new toy, I would wait to see what the other kids are playing with. :D

I would suggest that the overwhelming majority of Apple owners don't even know what WWDC is.

[ScottDodson]

The U2 iPod was a bad idea in the first place, really. But that's just my opinion. :x


Yeah, I was never a fan of it. Why is it that this is *understocked*? Apple just not producing these things, or are people actually buying it up? Anyone got any numbers on it? I figured Apple would have a huge stock of these.

[Toeside]

I'm in the market for an iBook and history shows that an update is overdue. If the iBook has a high inventory, then I'm afraid that an updated model won't be announced at WWDC, like I'm hoping.

It's really hard to pay $1000 for the same config that went on the market in Oct. I'm pessimistically optimistic that a new iBook config will be announced at WWDC. I'll order one the day it's announced!

[barneygumble]

Just becasue they have lots of stock does not mean they have lots of "old" stock if you know what i mean.

[aldo]

Aldo, aldo aldo, what did you just do buy Dell StocK?

If you're considering a Mac then there's No Comparision to a PC.
It's the Hardware and the SOFTWARE. You keep forgetting.
Plus, the slow recovery from Paranora. No Virus's no spyware no problems.

Really, you've got to do better Trolling than that.

Please don't bother.

Apple can't rely on it's current userbase for the tremendous growth they need to achieve to keep up with Wall Street's expectations.

So, basically Apple needs to find new customers. Walk up to the average person on the street and ask them if they know what 'Spotlight' is. Or hell, even what 'OS X' is. Then ask them if they know what 'Windows XP' is.

You'll find the vast majority don't know anything about the software. How do you propose that because the software is better (even though the vast majority of the market doesn't know anything about their software!) that somehow, people will just suddenly start buying Macs?

Please don't call me a troll BTW. I'm simply making an observation.

[nagromme]

Why? It's extremely expensive and lacks significantly compared to its PC counterparts.
If you actually look at ALL (not just one or two) of the specs and features of the iMac models, compared by price, I don't think you'll FIND any PC counterparts :D Then add OS X, lack of viruses, and a great software bundle. The iMac's a great deal!

And it WAS the best selling Mac, at least prior to the Mac Mini. (It may still be, I don't know--but they sure made it a lot better for the same price recently!)


that somehow, people will just suddenly start buying Macs?
The trend would seem to be exactly that :) They HAVE suddenly started buying Macs. Windows users who have never touched them before. Thank the iPod, the Mac Mini, Tiger, the continued problems with Windows and security/privacy, the delay of Longhorn, and the awakening of the press to all of the above.

Does everyone understand that Macs are better? Obviously not yet--and that extreme case is unnecessary. Are sales and awareness increasing? Yes.

This quarter is normally a slow one, seasonally--expected to have lower sales than the last one. And last quarter would be expected to have lower sales then the holidays.

Yet sales have gone UP each quarter. Marketshare too. And Apple's retail stores, which have thrived, are selling about half to Windows users.

I can't find the doom and gloom in this :)

[DeadEye686]

Agreed. I'd much rather see a healthy supply in the channel than weeks of waiting for a product. And perhaps this rumored big media blitz is indeed coming very soon and that's why they've allowed their inventories to increase.

I think (well, I hope, I guess, without any facts either which way) that this is the reason for the extra supply.

Edit: Beautiful post by nagromme while I was typing. Couldn't have said things better myself.

[madmaxmedia]

Note that the original story didn't say Apple was overstocked, it only said that there was enough inventory that Mac resellers are finally able to get product. Which means that Apple could have had more sales, but couldn't fulfill all orders.

Sales have been fine the last couple of quarters, there's no reason to believe they shouldn't be fine now.

[nagromme]

AI has an odd habit of putting a negative (probably unintentional) spin on products not being out of stock. There may be some of that happening here, I don't know.

For instance, they said a couple times that certain iPod models were selling poorly. But in the text of the article the evidence was simply that OTHER models were backordered, while these ones (like the Photo) were available. Being able to meet demand may partly be a sign that some products sell better than others (which is natural), but it doesn't mean that anything is selling poorly.

(Incidentally... if there's one Mac line that our little micro-slice of the 'net tends to gripe about needing improvements, it's the PowerBook line. They MUST have a G5 inside and all else is irrelevant! ;) But haven't I seen that the PowerBooks are one of Apple's best-selling lines at the moment all the same?)

[groovebuster]

Actually I think it is consistent with this article:

http://www.macnn.com/articles/05/05/17/demand.down.for.products/

With almost every product Apple is behind technologically compared to the PC World. If you want to gain market share when only 2% of the people are using your products, you need to be ahead...

The Mac platform didn't gain market share that much. If you want to convince the average consumer to buy your products (which are not mainstream) you need to be able to offer more than a nice design and a nice OS. Especially for that price. Numbers and price are and will always be important for Joe Six-Pack. Otherwise everybody would drive around in luxury cars.

The iPod hype seems to be over and sales are cooling down. Also not that much of a surprise. The iPod was always also a fashion accessory. And fashions normally come and go. When things become to much mainstream the fashion caravan moves on and looks for a new gadget...

groovebuster

[iJaz]

Hmm, the shipping for the 2.3GHz PM I ordered last week was pushed back one week until the 7th of June "due to unexpected high demand for the product"! :eek:
So no overstock over here! :rolleyes:

[MontyZ]

Gee, I wonder how Apple can unload all those extra iPods. Maybe lower the price ... a lot?? iPods are one of the most expensive digital players on the market, so, if they want to move stock, all they have to do is have a big SALE!

[sw1tcher]

This over supply doesn't sound good to me. I get the feeling sales have slowed. Could explain why Apple has decided to simplify next quarters sales numbers by splitting the sales categories into desktops and laptops only. Apple probably foresaw the sales slowdown.

[zv470]

well, I don't think it's a bad thing for Apple to be overstocked... If they are. It was much worse being understocked.

Research and Dev costs have been covered, it's better if people are able to purchase Mac stuff when they want it.

Looks bad if people can't buy what stuff and Apple can't supply. :)

[toddya]

If they are overstocked.. then it's probably due to retail climent being "mixed bag".

I live in Hawaii.. And the apple store in Hawaii is among the highest grossing stores!! Get that.. Can you imagine? Someone told me it does more than their "A" stores (like SF and NY) the big stores.. and our store is a "B" store in terms of size..

It ain't very large nor impressive in terms of size. But they sure sell lots of stuff man.

When everyone was complaining about NO Mac Minis, they had them (after a few initial weeks of being out however). They've always had a good stock of IPODS and almost every color for many "generations".

They even had stock of lots of stuff. So I can imagine that its just a slow time right now. Gas prices, housing prices, inflation. Its all starting to hurt our economy as a whole.

And can you imagine? The MEDIAN price of a freaking HOUSE in Hawaii was annnounced today at $620K!! And it ain't no castle either. 1200-1500 sq feet interior. Maybe 5K square feet of land. VERY VERY average.

You could probably buy something like this in the Continental US for maybe $100K? I don't know.. you should know.

Most people in Hawaii aren't well off either. Florida is the state with the highest number of wealthy people (I believe).

Anyway... Don't panic yet. Apple still has the "halo effect" everyone has been talking about.

Look.. It worked on me.. I became a 'rebel' again and use a MAC as my main personal machine. With Windows as my 'general work' machine.

Go figure huh?

Take care guys and gals.

Todd

[rosalindavenue]

Since I'm waiting for a update to the 12" ibook, this part of the Appleinsider report caught my eye:

"sources have only commented on slightly redesigned iBooks said to be making the rounds on the west coast."

I wonder what's redesigned? I figured that the widescreen rumors (if they were true at all) would not be fulfilled until the end of the year...

[topgunn]

Could it be that Apple is filling their warehouses in anticipation of their busiest time of the year? The school year is over and that means the new school year is right around the corner. Last year they had the whole debacle with their primary consumer machine not being available from early summer until late October and even later for some people. I think they are doing what they can to avoid that mistake again this year.

[Windowlicker]

Funny. A friend ordered a pink iPod mini over a month ago and it still hasn't shipped. Apple's system said the shipment (for new orders) would take 8 days -- that was 10 days ago.

Also, my mom ordered an ibook with bluetooth and a bigger hard drive over two months ago. Still hasn't shipped.. I believe she cancelled the order because I told there might be new ibooks coming ot very soon.

So I guess something's wrong.

[iGary]

Why? It's extremely expensive and lacks significantly compared to its PC counterparts.

If you are going to spend $1000+ on a computer, I think the vast majority are going to be fairly clued up on what they are buying. They will look at the specs and see they lack majorly compared to Dell, HP, or Mr. Whitebox.

Don't say the software is better because frankly people don't trust bundled software anymore after years of crap from the PC makers. They need to be educated on this, but they are simply not.

I think Apple needs to cut the PowerMac prices significantly, and perhaps the iMac's soon.

What I do think would be a very good idea to clear out all this inventory they have is a '$100' iPod deal. Buy an iMac, get an iPod for $100. It'd work better than a simple price cut of $150 (the 'loss' in terms of the iPod sticker) and would be a great upsell (Welcome to the Apple Store. You want an iPod? Well.. take a look at this great deal: shows a great iMac with an iPod for less than half price).

Well, I don't know. Seems like a good idea to me ;).

Troll.

[heisetax]

You would think the iMac G5 would have the most demand...

The iMac G5 is Apple's Professional Line now. The G5 Tower is Apple's least cared for product. This is where the 3 GHz pressure is being given. Since Apple & IBM have not been able to produce this product they have realigned their models. iMac G5 is the Professional Line. the Mac mini is the consumer model. So this gives no need or place for the G5 Tower. The iMac User has accepted the fact in the past that they would have good equipment, but not top of the line. But if Apple keeps making the G5 Tower a non-top-of-the-line with the most advance features, then the pressure will probably be moved to the iMac G5. This gives a lose=lose situation, i.e. no neat G5 Towers & the iMac being bad mouthed because there is no 3 GHz iMac.

Bill the TaxMan

[wrldwzrd89]

The iMac G5 is Apple's Professional Line now. The G5 Tower is Apple's least cared for product. This is where the 3 GHz pressure is being given. Since Apple & IBM have not been able to produce this product they have realigned their models. iMac G5 is the Professional Line. the Mac mini is the consumer model. So this gives no need or place for the G5 Tower. The iMac User has accepted the fact in the past that they would have good equipment, but not top of the line. But if Apple keeps making the G5 Tower a non-top-of-the-line with the most advance features, then the pressure will probably be moved to the iMac G5. This gives a lose=lose situation, i.e. no neat G5 Towers & the iMac being bad mouthed because there is no 3 GHz iMac.

Bill the TaxMan
You're right that the PowerMac G5 is a product with a small market, and thus doesn't sell all that many units, such a reorganization would be utterly stupid on Apple's part because it would kill the graphic design market for Macs as we know it.

[Frobozz]

Wow. Apple has finally got their inventory in order.

What a concept. You can get an Apple product that is advertised!

To those who speculate this is due to poor demand: you're reading WAY too far into this. It's just Apple responding to shareholder complaints about availability. Being able to supply product to a market is critical to the bottom line and recognizing revenue instead of putting it off because you can't deliver.

[Tilmitt]

Well regardless of what we think, the panicky shareholders have stripped 5.5% off the share price since yesterday. Come on new iBooks next week!!!

[Silencio]

The iMac G5 is Apple's Professional Line now. The G5 Tower is Apple's least cared for product. This is where the 3 GHz pressure is being given. Since Apple & IBM have not been able to produce this product they have realigned their models. iMac G5 is the Professional Line. the Mac mini is the consumer model. So this gives no need or place for the G5 Tower. The iMac User has accepted the fact in the past that they would have good equipment, but not top of the line. But if Apple keeps making the G5 Tower a non-top-of-the-line with the most advance features, then the pressure will probably be moved to the iMac G5. This gives a lose=lose situation, i.e. no neat G5 Towers & the iMac being bad mouthed because there is no 3 GHz iMac.

Just because the clock speed hasn't hit 3GHz yet doesn't mean a thing.

Just because PowerMac G5s don't have PCI Express or some of the other latest and greatest technologies doesn't mean it's obsolete, either.

I'm as disappointed as anybody else that IBM hasn't met their expectations in terms of ramping up clock speeds on the PPC970 series. However, they *have* outperformed Intel in that area in the two years since the PowerMac G5 was announced. And despite running "obsolete" tech like AGP 8X, the PowerMac G5 is still one of the top performers in the industry in applications that are well-optimized for dual processor use. Check those After Effects benchmarks again.

I do care about what's under the hood, but I care more about getting work done, and the PowerMac G5s still do that very well, thanks.

The iMac G5 does blur the line somewhat between "consumer" and "professional": it's certainly good enough for pros that don't run MP-aware applications or need gobs of RAM.

[Frobozz]

If you actually look at ALL (not just one or two) of the specs and features of the iMac models, compared by price, I don't think you'll FIND any PC counterparts :D Then add OS X, lack of viruses, and a great software bundle. The iMac's a great deal!

And it WAS the best selling Mac, at least prior to the Mac Mini. (It may still be, I don't know--but they sure made it a lot better for the same price recently!)

Agreed.

If it helps, my statistical sample size is only one person-- but my father just replaced an upgraded b&w G3 with a top of the line 20" G5 iMac. And he's loving it. No wires. Very fast. Does everything he could ever want. And he's using it as a Landscape Architect-- so he's not just doing fluff. CAD, Photoshop, etc.

So based on the numbers in Apple's 10K, empirical evidence, and these rumors, I think it's safe to say that the PowerMac is becoming a tough sell. But not because it's behind in features-- but because laptops and "consumer" level computing power has reached a point where only the most extreme uses *require* a top of the line computer.

Heck, I've even considered replacing my PowerMac with a PowerBook. I don't play that many games on my Mac anymore (I have a PC, PS2, PSP, and GBA for that.) I may still get a PowerMac to satiate the hobbyist in me, but I really don't *need* it unless more first tier games come out for it, or I get more 3D modelling work (which I don't actively pursue.)

Anyone else in this boat on these boards?

[Daveway]

Everyone who had doubts that this was a bad thing can go back to my first post on page 1. Last night I said that this was bad and if wallstreet found out the stock would drop.

Well.....AAPL dropped over $2 this morning. :rolleyes:

[Lancetx]

Everyone who had doubts that this was a bad thing can go back to my first post on page 1. Last night I said that this was bad and if wallstreet found out the stock would drop.

Well.....AAPL dropped over $2 this morning. :rolleyes:

I think it has more to do with the fallout from the iPod settlement. The WSJ is saying that it could cost Apple $100 million. Either way, those stock analysts that are poo-pooing AAPL this morning are still morons...it's nothing more than a buying opportunity. :)

[Daveway]

I think it has more to do with the fallout from the iPod settlement. The WSJ is saying that it could cost Apple $100 million. Either way, those stock analysts that are poo-pooing AAPL this morning are still morons...it's nothing more than a buying opportunity. :)

No. Its the inventory. ;) Piper Jafray, who pays most attention to AAPL, stated it is the overstock causing the fall and the settlement will have little effect.

The $50 coupons will likely not be redeemed and if they are it has to be for an APPLE product! These coupons will only cause more sales. ;)

[-hh]

Apple can't rely on it's current userbase for the tremendous growth they need to achieve to keep up with Wall Street's expectations.

But of course.

So, basically Apple needs to find new customers.

Which thus means that last year's huge growth rate (IIRC, around 40%?) either must have meant that roughly half of all Mac consumers in the world happened to choose last year to buy an upgrade (an amazing coincidence, eh?), or else Apple is being successful in expanding their customer base.

Walk up to the average person on the street and ask them if they know what 'Spotlight' is. Or hell, even what 'OS X' is. Then ask them if they know what 'Windows XP' is.

Wrong questions to ask. You first ask them if they have a PC. When they say 'yes', you ask them what kind. When they say 'Windows', you then ask them if they've heard about the Apple Macintosh. You'll probably get a positive response to that question probably 75% of the time.

How do you propose that because the software is better (even though the vast majority of the market doesn't know anything about their software!) that somehow, people will just suddenly start buying Macs?

Its called marketing. Of course, if Apple were to talk about all of the Malware woes of Windows products, they would immediately be accused of slinging FUD.

And FWIW, having just within the past month seen my first actual "Windows XP" television advertisement in an incredibly long time, its quite painfully obvious that Microsoft did see Tiger's rollout as enough of a business threat to them to prompt them to spend money to buy television advertising so to try to counteract Apple's "mindshare" advantages.

Sometimes you don't see the fire, but merely its smoke.

Please don't call me a troll BTW. I'm simply making an observation.

Unfortunately, your "observation" on the iMac G5 totally ignored any possibility whatsoever of any consumer assigning any possible value to factors such as the iMac's form factor.

(I know that I'm being a bit 'Reductio ad Absuridum' here, but...) to accept your comparison method which allows selectiveness in identifying the product's salient value-added attributes would permit a bare 60GB EIDE 3.5" hard drive ($42 at Pricewatch) to be considered the equivalent of a 60GB iPod Photo ($449). Even though most people would suggest that this comparison absolutely and completely misses the boat on true product comparability.

However, since your method also allows us to compare one of those cheezy-but-famously-quoted $399 Windows PC's to be directly compared (quite unfavorably, BTW) to a George Foreman Burger Grill (Amazon: $59.88)...since the common salient attribute is that both of them mostly just generate heat...maybe its not so bad afterall :)


-hh

[Applespider]

As far as iPod sales go, bear in mind - early adopters, fashionistas, mass market. We're only just into the mass market period - there are less than 20m iPods out there worldwide and a lot more people who listen to music. There are lots of 'normal' people who are only now considering buying MP3 players and may automatically go for the iPod because that's what's named most often (a little like the 'normal' person who goes computer shopping and buys an XP machine because it's what's named most often)

I read that article as 'in stock' rather than 'overstocked'; there are still lots of resellers who don't have items immediately available but have to order direct. That's not a good situation to be in - consumers who walk into a store want to leave with it again which was always one of Apple's problems. Cool ideas but a month-long wait. Obviously it depends on the ratio of stock to sales and achieving a good stock-turn but since resellers are still seeing 50% out-of-stock rates on Apple products in the last 3 months, I'm not convinced it's an overstock problem

[Lancetx]

No. Its the inventory. ;) Piper Jafray, who pays most attention to AAPL, stated it is the overstock causing the fall and the settlement will have little effect.

The $50 coupons will likely not be redeemed and if they are it has to be for an APPLE product! These coupons will only cause more sales. ;)

I happen to agree with that overall assessment, but tell that to the guys at the WSJ that are reporting that this iPod settlement will cost Apple $100 million. It's all over the business news this morning and it has a lot to do with why their stock is down along with the inventory issues.

I wasn't saying I agreed with them, as I actually think that analysts are typically morons when it comes to anything to do with technology. I'd be buying AAPL while it's down for the time being because it won't last once people figure out this iPod thing is not that big of a deal. They made the same overreaction last week in the opposite direction with the Intel on Macs story in the WSJ and that artificially drove the stock up....

[Macnotxp]

Yeah, the markets seem to be more preoccupied over the settlement than any inventory issues. I happen to disagree with them as well, as I don't think it will have that much of an impact on Apple's bottom line either. This is straight from Marketwatch.

Apple (AAPL: news, chart, profile) fell $2.10, or more than 5%, to $37.94 in the wake of Thursday's announcement that the company could end up paying $100 million or more to people who bought one of the first three generations of the iPod. The case centered around iPod batteries that failed to run as long as Apple had claimed.

[Phobophobia]

Yeah, the markets seem to be more preoccupied over the settlement than any inventory issues. I happen to disagree with them as well, as I don't think it will have that much of an impact on Apple's bottom line either. This is straight from Marketwatch.


The stock lost 1.7 billion dollars of value, for a problem that could only cost them 100 million. The logic of some people, lol.

[Phobophobia]

No. Its the inventory. ;) Piper Jafray, who pays most attention to AAPL, stated it is the overstock causing the fall and the settlement will have little effect.

The $50 coupons will likely not be redeemed and if they are it has to be for an APPLE product! These coupons will only cause more sales. ;)


Piper Jafray could be wrong, Daveway. And you didn't post a source.

[MontyZ]

Apple could just start giving away free iPods to those who buy a new iMac or G5. That would be a GREAT incentive to get some people to switch.

[Phobophobia]

Apple could just start giving away free iPods to those who buy a new iMac or G5. That would be a GREAT incentive to get some people to switch.

The profit margin on the iMac has already been lowered in order to give more value.

[iHateWindows]

Maybe they'll give away a ton of Macs and iPods at WWDC...

[iHateWindows]

Apple could just start giving away free iPods to those who buy a new iMac or G5. That would be a GREAT incentive to get some people to switch.

I could see them giving away iPod shuffles or iPod Minis, but not 20 GB or Photo ones.

[MontyZ]

I could see them giving away iPod shuffles or iPod Minis, but not 20 GB or Photo ones.
I could see them giving ME a free 20GB iPod. I've closed my eyes and am imagining it as I type... (Oh, Steve! Thanks so much!)

[Sun Baked]

The stock lost 1.7 billion dollars of value, for a problem that could only cost them 100 million. The logic of some people, lol.That's what happens when a stock become a market darling like Apple has been for so long.

As long as the news is sparkling and rosy the stock will go up.

When a pimple shows up in the financials, news, or from people like this, the stock is usually punished rather harshly.

[alexeismertin]

I don't think this report is very accurate, for example in the UK the Mac Mini (off the shelf & BTO) changed from shipping from 7 days to 1-2 weeks, thats hardly overstocked.

[wrldwzrd89]

I don't think this report is very accurate, for example in the UK the Mac Mini (off the shelf & BTO) changed from shipping from 7 days to 1-2 weeks, thats hardly overstocked.
I think the reason this is is either the information it was based on is now out of date, the report was specific to a particular region (like the USA), or both.

[alexeismertin]

Okay, when the info was first posted I think it was 7 days shipping in the UK which moved to 1-2 weeks.

Now there's a global Mac Mini surge/shortage

Europe is 1-2 weeks
Australia is 7-10 days
US has moved to 6-8 business days



Update soon?