Backlash Against Hype

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[Tallest Skil]

It's not a marketing ploy. They're not hoarding hardware.

[wronski]

A backlash? You don't have to buy anything.

[benlee]

Do you have any support to back up your "allegation".

And also. Why a backlash even if true (which I highly highly doubt is so)-- people either want one or they don't. They are not that hard to get. Nowhere close to the Wii.

I don't see anything wrong with this stock.

[lakaiordie]

some people think nintendo is making an artificial shortage in the US. others think they're diverting more product to europe where they make better profit since the dollar sucks. but after like 2yrs and its still hard to find. thats retarded.

[Chodite]

You're delusional.

My local Apple Store gets about 100 per day and are sold out by noon. What more do you want them to do?

[MasonMI]

I dont see a backlash i just think Apple underestimated the demand for the iphone 3G, some people just forget the iphone 3G was rolled out to many other countries besides the US so i'm sure they're all facing shortages.

[tony-in-japan]

Miffed because a product is popular and you don’t want to have to queue up like others to get yours?

But believe the hype. I got one a few days ago and it was well worth the wait (over 1 year in Japan). The best things certainly come to those who wait...

If you really, really, and I mean *really* wanted one, you would have one in your hands by now like some others do.

[AppleinJapan]

Tony in Japan,

I went to a Softbank store near where I live in Western Kanagawa..I got the worst service that Ive had anywhere in Japan. Ive been on Softbank forever but the service concerning the iphone and how the customer has to set it up (including the softbank mail) is just terrible.

After being told to come to the store at 10am (because they will have 10 phones), they stated that they didnt know when they would be arriving.

So I came home and called again at 12 - They were getting them at 2 so I went and finally got a 16gb white one But the process was just painful. 1 hour long and that was just signing the contract. Basically all of my questions regarding softbank mail and how to transfer my contacts from my Nokia were not answered because he staff did not know - they said please ask Apple or go to the softbank site ! So to set up my Softbank mail address, I had to google it to find the answer (Apple's guide etc etc is mostly about gmail etc etc but not how to use softbank's @i.softbank.jp)

After going through the process, I wonder if many Japanese were as pissed off as me or Did I just get a bad staff member (oh and by the way, my Japanese is pretty good so it wasnt a language problem) and the worst part is that they asked me if I could pay by credit card - Ive been a customer for 8 years and when I asked why, the staff said "its for foreigners"

[tony-in-japan]

Tony in Japan,

I went to a Softbank store near where I live in Western Kanagawa..I got the worst service that Ive had anywhere in Japan. Ive been on Softbank forever but the service concerning the iphone and how the customer has to set it up (including the softbank mail) is just terrible.

After being told to come to the store at 10am (because they will have 10 phones), they stated that they didnt know when they would be arriving.

So I came home and called again at 12 - They were getting them at 2 so I went and finally got a 16gb white one But the process was just painful. 1 hour long and that was just signing the contract. Basically all of my questions regarding softbank mail and how to transfer my contacts from my Nokia were not answered because he staff did not know - they said please ask Apple or go to the softbank site ! So to set up my Softbank mail address, I had to google it to find the answer (Apple's guide etc etc is mostly about gmail etc etc but not how to use softbank's @i.softbank.jp)

After going through the process, I wonder if many Japanese were as pissed off as me or Did I just get a bad staff member (oh and by the way, my Japanese is pretty good so it wasnt a language problem) and the worst part is that they asked me if I could pay by credit card - Ive been a customer for 8 years and when I asked why, the staff said "its for foreigners"

I am sorry to hear of the hassle you had to go through to get your phone.

My view is that Softbank were unprepared for dealing with a new phone that was designed by foreign company (Apple) and is integrated with use via PC/Macs. The customers who had the most initial problem-free experience were probably those who did their thorough research on the net before buying.

Mine was relatively problem free as it is a company phone.... so a company employee got mine!! Plus, I already has a mobile.me account set-up, and that really does smooth the transition. All you mail contacts, addresses, etc, is updated through sync, so I definitely recommend getting a me.com account to make a smooth transition. I am not going to bother with the Softbank’s email address. I heard they only keep you emails for a month max.

Well, now you have your phone, are you happy with it? Did you check out the funky ‘7-eleven’ and ‘lawson’s’ mini logos on the GPS maps? They are way cool!

[extraextra]

I think Apple underestimated the demand (I think a LOT of us did), but I think it's unfair that they aren't shipping more to AT&T stores. I know there are waay more AT&T stores than Apple stores, but could they stand to ship more than 2 phones per day to each store? Probably.

As for Nintendo, I thought it was pretty much confirmed that they ship more units to Europe/Asia because they can make a higher profit there, since the U.S. dollar is so low?

Honestly I was getting tired too, and just as I was getting super pissed off my iPhone arrived. :p That's Apple for you.

[Aiphanes]

Who cares what apple shipped to ATT stores...Go to an ATT store and do a direct fufillment like i did today. I will have my phone within a week, and I did not have to stand in line..its the next best thing to ordering online...

The apple stores usually sell out before lunch everyday. Do not even try to get on during the weekend.

ATT has the potential to sale as many as the apple stores...but you have to go in and order.

When I went in today at 7:30 pm I saw 2 other people order iphones.

[Aiphanes]

I think Apple underestimated the demand (I think a LOT of us did), but I think it's unfair that they aren't shipping more to AT&T stores. I know there are waay more AT&T stores than Apple stores, but could they stand to ship more than 2 phones per day to each store? Probably.

As for Nintendo, I thought it was pretty much confirmed that they ship more units to Europe/Asia because they can make a higher profit there, since the U.S. dollar is so low?

Honestly I was getting tired too, and just as I was getting super pissed off my iPhone arrived. :p That's Apple for you.

Nintendo is simply holding back shipments...the wii is way more over hyped for what it is than the iphone...come on now almost 2 years and it is still sold out? Nintendo is holding up stock...plain and simple.

But even the PS3 is pretty much sold out eveywhere too...so...we live in a age of hot gadgets!

[DiamondMac]

Is the iPhone really THAT hard to find for you? Are there no OTHER stores around you to get it?

As for the Wii, I understand that to be honest. I got the LAST wii a few weeks ago at a store that was my 8th of the day trying to find it

[wronski]

Of course they're selling out. An extremely large amount of people want them right now. Stores have had the infrastructure and technology to sell fried chicken for years but if everyone storms your local Kroger tomorrow morning with an apocalyptical craving for chicken they will probably end up sold out fairly quickly. The fact is, Apple is getting new shipments every single day and there's no scarcity if supply is replenished in the morning.

[wronski]

I don't believe there are manufacturing or shipping delays and you don't know that either. The only thing that Apple has done this time to encourage long lines is removed the ability to purchase online, this you can argue. All the hype is otherwise created by the people choosing to wait in line. I mean, who is going to backlash all of a sudden? You? If anything that's better for me anyhow. The fact is if a huge number of people want the iPhone at one time they will certainly be selling out more quickly.

[newyorksole]

You just have to get in line early. I know that Apple should ramp up production, but they probably are doing the best they can. So you just have to line up early and bring music/a good book and you'll have your iPhone.

It is a hot product right now so you gotta direct fulfill or get in line.

[wronski]

Or just wait until the hordes of people are gone. I mean, I just don't understand what would give anyone the right to backlash. It's not like Apple has a responsibility to be producing epic amounts of iPhones just so you also get one. If anything they are the ones losing right now because they're not getting your sale.

[aristobrat]

Did anyone have any trouble finding 1st gen iPhones? I didn't.
Oh, you mean the 1st gen that only launched in the USA and cost $599? Even then, they were still shortages the first week or two after launch, depending on where you were.

Didn't AT&T just say that the iPhone 3G is selling 2x faster than the 1st gen? And that's just in the US. How many other countries are also selling the iPhone 3G ... 21. Twenty-one other countries.

How can you even compare that to the launch/immediately availability of the 1st gen?!?! Did you even buy your first gen iPhone within 14 days of launch?!

Edit: I also think that a product needs to be on the market for more than 14 days before you try to compare its stock availability to something that's been impossible to find for two years when trying to derive a point.

[pavvento]

I think the biggest difference is the activation process. When the first one came out there were ATT stores that didn't have any in stock, and Apple stores that were running low, however there were not crazy lines like there are now because of the activation process.

[marksman]

some people think nintendo is making an artificial shortage in the US. others think they're diverting more product to europe where they make better profit since the dollar sucks. but after like 2yrs and its still hard to find. thats retarded.


Yet Nintendo Wii just passed the 360 as the number 1 selling console, having sold 10.9 million consoles since its release.

Did anyone have any trouble finding 1st gen iPhones? I didn't.

The technologies that exist in the iPhone 3G have existed for more than 2 years, which means the infrastructure for the chipsets and components is there and as far as I know there is no shortage of labor in China, so there is no practical reason for iPhone 3G scarcity.


Other than you don't overproduce. If you estimate you will sell 10 million phones in the next 9 months, you don't go out and order 20 million phones to be made.


Extra inventory costs money. So in a perfect world a business wants only exactly enough inventory so every customer that wants their product can get one and not one more. Some people seem to think Apple should have just had them go and order 50 million phones. That would have killed apple. Not to mention there are practicial manufacturing limits given the lead times and the rest.

[aristobrat]

Apple would love to sell 10.9 million iPhones, so why not reproduce Nintendos marketing strategy?
Apple sold 1 million phones in 72 hours. Took them 74 days to do that with the original iPhone. Why would they need to reproduce anyone's marketing strategy to sell more iPhone 3Gs? :eek:

[Sobe]

The whole "raising demand via shortage" is only valid if the product is any good.

You can make the product scarce, but if it's not any good, it's not going to sell.

The wii isn't selling because stores don't have 50 on the shelves.

What will happen is that demand will have a far longer shelf life, past the original release date if supplies are short. And the price can be kept relatively constant.

It's selling because it is a fantastic system that bring things to the experience that other consoles do not.

Funny, that sounds a whole lot like the iPhone.

[.:R2theT]

See my reply to Chodite. There is no practical reason for there to be a manufacturing or shipping delay for the iPhone 3G. The technology built into the iPhone 3G is more than two years old (GPS, HSDPA, etc.), minus iPhone OS X, so the manufacturing capacity is there, the chips are available (all the little parts that come from Hong Kong, Thailand, Malaysia, etc.) and there is no shortage of Chinese labor.

Apple was perfectly well prepared for the first-gen iPhone, it just seems to have jumped on the "let's generate hype/make it hard to get" bandwagon that has proved so successful with the Nintendo Wii. Just this past week, the Wii became the number one selling game system in the country.

You've got it all wrong. It's called just-in-time delivery. Unfortunately, Apple is in the weeds. Not just with iPhones but with their MobileMe roll-out and the 2.0 software release. They seem to be unable to keep up with their successes of late. A pretty good problem for a company to have. You think Apple wants to turn away a single customer when they come in for their iPhone...no way!

You seem to be confusing some idea you have about the sociological impact of these types of consumer induced frenzies with the fact that Apple is a business that makes money selling things. There is nothing behind the curtain...in fact, there is no curtain. Just boats sailing along with iPhones on them, coming to stores near you...very soon!

[kdarling]

Apple sold 1 million phones in 72 hours ... in just the United States. Took them 74 days to do that with the original iPhone.

Correction:

It was one million in 21 countries... at less than half the original upfront price... and that number included phones that were not actually sold, but just on their way to non-Apple stores from China.

[scaredpoet]

Did anyone have any trouble finding 1st gen iPhones? I didn't.

that would be because it initially launched in one country. And because a number of people were wary of a $600 phone that lacked 3G.

*I* didn't care to line up on launch day for the 1st Gen. In fact I almost didn't buy it all. I know a lot of people who never did buy it. By comparison, the response for the 1st Gen was tepid.

Now, you have a 60+ country launch, and a phone that's riding the coattails of the original, newer features, lower initial purchase price. A VERY different scenario, and one for which there were few predictors. The demand caught EVERYONE off guard. Especially considering that people were, as usual, criticizing the iPhone and espousing on why you shouldn't buy it, and the mainstream press was wondering if anyone would buy such a thing in a down economy.

The technologies that exist in the iPhone 3G have existed for more than 2 years, which means the infrastructure for the chipsets and components is there and as far as I know there is no shortage of labor in China, so there is no practical reason for iPhone 3G scarcity.

Okay, well, buy a phone from a company without shortages then. That'll show 'em. I hear RIM has plenty of stock to go around.

[aristobrat]

Correction:

It was one million in 21 countries... at less than half the original upfront price... and that number included phones that were not actually sold, but just on their way to non-Apple stores from China.
Thanks for the correction, .. I updated my post. :)

[wronski]

If Apple had the same amount of iPhones in the USA this launch as they had at the original iPhone launch the wait would be even longer. There is no shortage, watch for "supply has replenished" posts tomorrow.

[chinl]

Threads like this annoy me because it shows a complete lack of understanding of business, not to mention some serious issues of maturity.

If they don't sell a product (Wii or iPhone) they don't make money. The more they sell, the more they make. Every purchase that someone can't make is money they miss out on. Advertising a product but not trying to sell it doesn't make good business. If they could, they would make and sell a billion units tomorrow. Imagine the bonuses the CEOs could make!

Shortages also lead to consumer frustration, and frustration leads to a lack of sales. If people are repeatedly unable to buy a product they are apt to simply stop trying. Hype is good publicity. Telling people they can't even buy a product isn't.

Nintendo has their factories at full production. They are making Wiis faster than when they came out because there is such great demand. The number of factories is fixed. They cost billions of dollars to build. Microprocessor fabrication is not a cheap business to get into. Nintendo has also admitted to moving more product in Europe/Asia because the US dollar is low. Also, there are still plenty of people buying up Wiis and selling them on eBay and Craigslist to make a quick profit -- you have them to blame in part.

The same holds for Apple and the iPhone. They released it in several dozen countries simultaneously. They sold a million units in the first 3 days -- it took several months for the first iPhone to sell that many units. Now you have a subsidized phone that has been released to an even larger market.

It takes time to build the product, and they spent some time building a stock before the release. That initial stock, I imagine, is depleted. They will still be building them as fast as possible, but the demand is still huge. They could have built even more units initially -- and released the product next month. That would also have annoyed people. If ordering wait is still under 3 weeks. Apple could have waited long enough to fulfill that level of demand, but no one would have one yet rather than just some people.

As for distribution discrepancies... Apple being the producer gets first dibs. They also have bigger stores with bigger demands than AT&T. Rather than compare a single Apple store to a single AT&T store, compare that Apple store to all of the AT&T stores in the same service area. AT&T has many small stores, Apple has very few large ones. I would guess that if you do the comparison that way it looks much more even.

As for hype; it really depends on the perspective. For the overwhelming majority of the population the idea of waiting in line the night before a cell phone comes out is insane. Remember, the level of fanaticism present on this board is no way indicative of the majority. Most people will go in to the store, see that it is out of stock, order, and not spend the next weeks complaining. They won't rant and rave that they haven't gotten their phone by day 4 of the 7-10 day estimate they were given. They don't see Apple and AT&T as "owing" them something for the delay. They see it as a product that is sold out. This is no different than any other product. Has no one here tried to order furniture, a car with specific features, etc.? There are many things that are much more expensive for which you must wait longer. Two weeks for a phone is hardly the end of the world.

[bluenoise]

The fact that mine was manufactured the week before I bought it tells me they weren't storing it in some warehouse to keep up the hype factor.

Look how quickly they sold the first million of them. Maybe they were pleasantly surprised by the demand, but it sure beats manufacturing two million and only selling 750,000 in the first two months. What company would want to do that?

[wronski]

Go ahead, check the availability page right now.

[wronski]

Too bad I don't live in NY.

You might want to review your information and perhaps realize that I've been right all along. Here's the latest screen cap:

126403

And here are your local stores:

126404

[aristobrat]

there's a thread where someone made a tool that looks at the same inventory that apple.com/retail/iPhone uses.

Super quick way to see the total availability. I think only 8% of apple stores were sold out this morning when they opened.

He even snapshots the history every 15 minutes so you can track the sell outs over the day.

[wronski]

Those screenshots were taken at 2130 last night, I don't know where/when you got yours.

The availability checker was having errors at the time you checked as was discussed. Those screen shots are from 3 hours later, around midnight.

[DiamondMac]

Go ahead, check the availability page right now.

Be careful if you are going to drive long distances to get them though

Store around me sold out in an hour so if you are going to drive somewhere longer than 50 miles away, get there early or call them once they open to see how long the lines are and how much stock is there