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Old Dec 28, 2012, 11:32 AM   #1
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Apple's Supply Chain to Work Through Chinese New Year Holiday Amid 'Insatiable Appetite' for iPad Mini in China




Brightwire summarizes a report [Google translation] from Taiwanese news site United Daily News claiming that Apple's supply chain partners will continue working through the traditional Chinese New Year holiday in order to keep up with demand for the popular iPad mini and iPhone 5. The holiday falls in mid-February in 2013, with many workers traditionally returning to their homes for two weeks or more in celebration.

The report comes as Apple continues to experience tight supplies of the iPad mini in particular, with the company's online stores around the world generally citing 1-2 week shipping estimates for new orders.

Demand for the iPad mini is also very strong in China, where the device launched on December 7, as highlighted in a new report from Topeka Capital Markets analyst Brian White. White cites "insatiable appetite" for the iPad mini in China and Hong Kong leading to stock shortages, with checks indicating that the iPad mini is more popular than the fourth-generation iPad.
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Our research is pointing to very strong demand for the iPad mini in China and this is leading to stock-outs this week. Similar to Hong Kong, we are being told by contacts in China that the iPad mini is already more popular than the fourth generation iPad. Prior to the China launch, we indicated that the iPad mini would be the "next big thing in China" and we believe this phenomenon is starting to develop. In our view, the smaller form factor and lower price point will allow Apple to sell the iPad mini in more meaningful volumes versus the regular-size iPad.
The report suggests that Apple is beginning to achieve some balance on the iPhone 5 in China, with walk-in purchases now starting to become more widely available two weeks after the device's debut. Evidence of the Apple catching up with iPhone 5 demand in the first waves of launch countries appeared earlier this month with the company's online stores shifting to immediate "in stock" availability of all models.

Article Link: Apple's Supply Chain to Work Through Chinese New Year Holiday Amid 'Insatiable Appetite' for iPad Mini in China
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Old Dec 28, 2012, 11:39 AM   #2
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The fact supply-demand balance is being achieved before the end of the quarter means they made huge quantities for release and the quarter should look pretty good.
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Old Dec 28, 2012, 11:54 AM   #3
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Demand for the iPad mini is also very strong in China, where the device launched on December 7, as highlighted in a new report from Topeka Capital Markets analyst Brian White. White cites "insatiable appetite" for the iPad mini in China and Hong Kong leading to stock shortages, with checks indicating that the iPad mini is more popular than the fourth-generation iPad.

Factory work in third world countries kind of sucks, eh? And somehow, I doubt that many of those factory workers are contributing to the current "insatiable appetite" in China for iPad Minis.
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Old Dec 28, 2012, 11:56 AM   #4
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I thought us Americans drove the market for rampant consumerism. At least the Chinese won't have to wait long on shipping times, eh?

;-)
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Old Dec 28, 2012, 12:14 PM   #5
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At least these indicators of brisk sales will drive the stock down even further!

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Old Dec 28, 2012, 12:15 PM   #6
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Completely understandable. I am using both and it's the best combo I've ever experienced.

Chinese people just start testing Apple drugs. They will be addict.
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Old Dec 28, 2012, 12:28 PM   #7
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Completely understandable. I am using both and it's the best combo I've ever experienced.

Chinese people just start testing Apple drugs. They will be addict.
I couldn't justify buying the mini when I have a 3rd gen, but got one for my mother for Christmas and she can't put it down. And this is someone who is 71, never owned a smartphone and knows very little about multi touch devices. But she absolutely loves her mini.
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Old Dec 28, 2012, 12:31 PM   #8
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It amazes me how Apple can foresee these things. I assumed the iPad Mini would find a sort of niche, but I never expected it to be that much of a hit (especially with all the press focusing on the disappointment over a non-retina display). But once again, Apple seems to know what the public wants. It makes sense that they came out with the iPad 4 when they did, to keep the interest up in that device and prevent too much cannibalization. It seems that Apple might be aiming more toward an iPad (the Mini) and an iPad Pro lineup for the future.
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Old Dec 28, 2012, 12:32 PM   #9
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Factory work in third world countries kind of sucks, eh? And somehow, I doubt that many of those factory workers are contributing to the current "insatiable appetite" in China for iPad Minis.
The thing is that Foxconn is exploiting factory workers without any real outlook on any sort of progress. Foxconn will be still Foxconn in 20 years time exploiting next generations of factory workers. A company like Foxconn would be excusable if their would be any possible progress in the future, like what happened in South Korea. But in its present form it is simply a 21st century form of slave labor.
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Old Dec 28, 2012, 12:34 PM   #10
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Buy now people. Last chance.
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Old Dec 28, 2012, 12:35 PM   #11
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My current plan of attack is to wait till the Mini refreshes to retina and other technical features, then give them as gifts or pay me later to all the folks that come to me whining about their computing experience. It will make my life a bunch less noisy for under $3500, some of which I'll get back.

The thing about workplace standards is they are rare and not mandated. They are voluntary. So any such effort is crazy that it happens at all, but makes those particular workers "luckier" than others. However as with any regulation, there is always a downside. Since these workers typically relocate for the work period, they WANT to work long hours, to maximize the money they make. Now someone is telling them they can't, and they cannot offset that by going home earlier each night. They are stuck. Unintended consequences. The story of regulation.

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Old Dec 28, 2012, 12:40 PM   #12
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My sis got a mini. Makes my nexus feel like the cheap toy that it is.
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Old Dec 28, 2012, 12:50 PM   #13
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Originally Posted by iGrip View Post
Factory work in third world countries kind of sucks, eh? And somehow, I doubt that many of those factory workers are contributing to the current "insatiable appetite" in China for iPad Minis.
I worked at a well paying job in a large US corporation and we only had one paid holiday a year - Christmas Day. Even so we would not get the day off but would get double time if we worked it. What are Foxconn's policies? For all you know the workers might receive increased pay for the holiday. Not to mention it would be awesome if the US had a two week national holiday - dang sweatshop nation!

FYI: China is not a third world nation. China and the Soviet Union where the center of the second world.
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Old Dec 28, 2012, 12:53 PM   #14
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Working through the Chinese New Year is a big deal, it's one of the most important holidays in their culture. Imagine if this occurred in the U.S., and thousands of minimum wage workers were forced to work through Christmas and the New Year? Oh, wait, that's already been happening, if they're lucky to find employment.

What is happening to this world? The next time I need another device, I'll think twice about how and where it is made; this is for Apple and any electronics company that works with Foxconn. It starts with all of us, our dollars do make a difference.
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Old Dec 28, 2012, 12:54 PM   #15
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Old Dec 28, 2012, 12:55 PM   #16
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I used to own an iPad 2. It rotted in my shelves. Broke down and sold the damn thing, and got an iPad mini. Been using it nearly as much as my iPhone 5! I just wish I had a pocket big enough to fit the thing. Maybe it's time I get me a man's bag...
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Old Dec 28, 2012, 01:01 PM   #17
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Old Dec 28, 2012, 01:01 PM   #18
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Wonder what will happen to the mini/classic sales ratio when the iPad mini becomes retina... My guess is that the larger iPad will become the niche. Though, Apple might underpower the mini deliberately to maintain an edge for the 9.7".

Interesting times, especially if you bear in mind that Windows 8 sales are not really lifting off due to decreased PC sales (20% down year over year in the US). The post-PC era is real and Apple saw it coming way beyond the horizon. Now that's vision. *applause*

Last edited by TC03; Dec 28, 2012 at 01:06 PM.
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Old Dec 28, 2012, 01:11 PM   #19
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I think the company should shut down during holidays if they can. Those impatient Chinese can wait one day to get their iPads.
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Old Dec 28, 2012, 01:14 PM   #20
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What is happening to this world?
Among other good things, millions of Chinese workers have much better jobs (pay, benefits, hours, and conditions) than they've ever had opportunity to before. Wasn't that long ago millions per year died of starvation in forced marches and famine.

Ain't perfect, but sure heading in the right direction. Can't make the jump from groveling to luxurious overnight.
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Old Dec 28, 2012, 01:17 PM   #21
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Wonder what will happen to the mini/classic sales ratio when the iPad mini becomes retina... My guess is that the larger iPad will become the niche. Though, Apple might underpower the mini deliberately to maintain an edge for the 9.7".

Interesting times, especially if you bear in mind that Windows 8 sales are not really lifting off due to decreased PC sales (20% down year over year in the US). The post-PC era is real and Apple saw it coming way beyond the horizon. Now that's vision. *applause*
In all fairness, Google saw it too which is why they bought Android in 2005. I think both companies realized that Microsoft was unassailable on the desktop and in notebooks. So the only way to change the game was to change the rules - make desktops and notebooks less relevant.
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Old Dec 28, 2012, 01:19 PM   #22
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Maybe it's time I get me a man's bag...
I found a WWII map case (canvas & brass, with shoulder strap) which is a perfect fit for the iPad. $20 at a military surplus store.

Also fond of products from saddlebackleather.com - not cheap, but built for men, looks better the more it gets beat up, and comes with a 100 year warranty (tagline "they'll fight over it when you're dead").
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Old Dec 28, 2012, 01:22 PM   #23
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Maybe the mini should have been priced a few bucks higher even. (Stockholder viewpoint.)
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Old Dec 28, 2012, 01:28 PM   #24
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In all fairness, Google saw it too which is why they bought Android in 2005. I think both companies realized that Microsoft was unassailable on the desktop and in notebooks. So the only way to change the game was to change the rules - make desktops and notebooks less relevant.
I think in 2005 they wanted to challenge RIM/BlackBerry rather than ignite a post-PC era. However, the pace at which Google has been introducing services that make Microsoft less relevant at the cost of cloud services is impressive.
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Old Dec 28, 2012, 01:36 PM   #25
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Was thinking about buying my son a mini but he got an Xbox 360/Kinnect system instead.

So now I will turn my attention towards replacing my gf's first generation iPad with a mini. I think she'd love it.
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