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CFreymarc

Suspended
Sep 4, 2009
3,969
1,149
I have a hard time believing Apple truly doesn't have any way to create more than they are already making. Running out is another way to keep this listed as a 'hot item' (as if such a tactic is even necessary). This artificial "struggle" is evidenced by launching the ipad in nine additional countries before they satisfy demand in the first one.

The iPad has been way more successful than anticipated. Apple announced that a million units have been sold. In the manufacturing world, a "million unit build" is a very big prize and a common amount for a CM to budget and work upon. My take is that Apple actually ran out of stock, saw it a few weeks ago and told their CM to do another build.

I am sure the replacement stock is built by now. The issue now is shipping and distribution. These units are built in China and then sent overseas on huge cargo ships that are filled with hundreds of containers.

As I write this, I am sure there are Chinese cargo ships full of iPads in the middle of the Pacific headed to either the Port of Oakland or Port of LA. Then these containers get hitched to 18-wheelers for a run to warehouses in major metro areas for local distribution or mail order stock.

For retail, local delivery trucks are loaded for shipment to the retail spots that include the Apple stores. The local store crew unloads and places them on the store shelves between day shifts and THEN you get your iPad refresh.

This whole distribution process from overseas factory to store shelves takes about three to four weeks considering point of sale.

By end of May, we will be seeing them again. In the meantime, I'm sure some are making nice bank reselling their iPads on eBay.
 

theheadguy

macrumors 65816
Apr 26, 2005
1,157
1,390
california
I have a hard time believing Apple truly doesn't have any way to create more than they are already making. Running out is another way to keep this listed as a 'hot item' (as if such a tactic is even necessary). This artificial "struggle" is evidenced by launching the ipad in nine additional countries before they satisfy demand in the first one.
Sounds a lot like Nintendo when the Wii launched.
Exactly. It worked out very well for Nintendo.
 

CFreymarc

Suspended
Sep 4, 2009
3,969
1,149
This is pretty amazing. So many people were knocking this thing when it was first introduced in January.

While you can knock Apple a lot. One thing they have a very good history of in the recent past is creating a market out of thin air from fragmented purchasing trends that very few can assemble properly.

I'm sure there are public observation points that Apple trends and monitors that most Intelligence Agencies would be envious of to have access to if the knew where to go.
 

striatedglutes

macrumors 6502
Feb 22, 2009
419
1
USA
The iPad has been way more successful than anticipated. Apple announced that a million units have been sold. In the manufacturing world, a "million unit build" is a very big prize and a common amount for a CM to budget and work upon. My take is that Apple actually ran out of stock, saw it a few weeks ago and told their CM to do another build.

I am sure the replacement stock is built by now. The issue now is shipping and distribution. These units are built in China and then sent overseas on huge cargo ships that are filled with hundreds of containers.

As I write this, I am sure there are Chinese cargo ships full of iPads in the middle of the Pacific headed to either the Port of Oakland or Port of LA. Then these containers get hitched to 18-wheelers for a run to warehouses in major metro areas for local distribution or mail order stock.

For retail, local delivery trucks are loaded for shipment to the retail spots that include the Apple stores. The local store crew unloads and places them on the store shelves between day shifts and THEN you get your iPad refresh.

This whole distribution process from overseas factory to store shelves takes about three to four weeks considering point of sale.

By end of May, we will be seeing them again. In the meantime, I'm sure some are making nice bank reselling their iPads on eBay.

You really think they're shipping by sea? Doubt it.
 

EchoTheDolphin

macrumors newbie
May 3, 2010
29
0
You can't necessarily just 'make more' of something because you want to. It takes significant increases of investment in capital to make more, and you don't ever want to spend a ton more money just to make a little bit more.

Before you speculate, read up on the basics of economics.

2 big things: Basic understanding of supply and demand, how price affects it, etc. (For instance, apple could solve the supply problem buy increasing price, but they don't)

Also economies of scale, and diseconomies of scale will tell you why sometimes making more is a good thing, but it can incur an incredible expense to jump up to the next level.

You really think they're shipping by sea? Doubt it.

It's most certainly shipping by sea, you don't bulk freight ship by air, it costs almost 250 times as much.
 

addicted44

macrumors 6502a
Jun 6, 2005
533
168
This almost reminds me of Honda in the mid-1980s; they were able to "create" shortages (such as in bright-yellow Preludes) in an effort to spike excitement.

I find it hilarious that people who are on one hand claiming they didn't expect the iPad to sell at all, are on the other hand blaming Apple for not predicting the iPad to sell at 3 times the rate the iPhone did, or reach the 1Bn mark faster than any other consumer electronic product.

http://www.technovia.co.uk/2010/05/...-fastest-product-to-1-billion-sales-ever.html
 

DanielSw

macrumors 6502
Aug 31, 2009
400
209
Clearwater, FL
I have a hard time believing Apple truly doesn't have any way to create more than they are already making. Running out is another way to keep this listed as a 'hot item' (as if such a tactic is even necessary). This artificial "struggle" is evidenced by launching the ipad in nine additional countries before they satisfy demand in the first one.

As if you know better than Apple how to run its business. Armchair quarterbacks galore!
 

budselectjr

macrumors 65816
Oct 6, 2009
1,006
1,851
Minnesota
Sounds a lot like Nintendo when the Wii launched.

When you plan a product and forecast demand, you have to set up proper capacity as well. If your wrong on your forecast, it's hard to add new capacity just like that. Means ordering larger quantities of components for that product too. The supplies of those parts also planned capacity based on the forecast sales and have to adjust as well. It's more a supply chain and capacity issue than a marketing ploy.
 

nwcs

macrumors 68030
Sep 21, 2009
2,722
5,262
Tennessee
Be careful, the iPad could have been a dud. How many people do you know who has or wants an AppleTV. Apple has misfired before.

I have an Apple TV and I think it's great. If they just put blu-ray on it and relaunched the device it'd be killler. Especially if it could rip the DVD/bluray to a file for you (dreaming, I know). :)
 

firi

macrumors newbie
Dec 10, 2009
4
0
Availability

Anyone signed on a waiting list has received the call? Just want to know how much I have to wait...
By the way passed by Denny's today and they were selling hot cakes like they were iPads!
 

vidicon

macrumors newbie
May 7, 2010
1
0
I've been on the Notify Me list since Saturday. :D

Me too. Multiple notify me lists, actually. I'm surprised that this is a new story. I've been regularly checking all of the local Apple Stores and Best Buys for iPad 3Gs. I'm not even that picky - I want the 32GB but I want *any* 3G iPad more.

And before anyone asks why I didn't pre-order, I travel too much to pre-order without a definite date, and once there was one (ships May 7) I knew that wasn't going to work for me because I'm boarding a plane on Monday. Hopefully I can get off one of the lists or otherwise find one by mid-day Monday, cause I'd really like to have it for the trip.
 

charlituna

macrumors G3
Jun 11, 2008
9,636
816
Los Angeles, CA
even if the two groups talked to different stores that's only 29 out of 221. hardly a majority. they don't know if the rest are sold out or just fine.

really great fact gathering there.
 

Vulpinemac

macrumors 6502a
Nov 6, 2007
677
0
Really? I've heard predictions of 5 million being sold this year. Not sure where you heard that one.

Yeah, predictions of 5 million when this thing looks to be on track for 2 to 3 times that. By that measure, the comment was valid.
 

swajames

macrumors regular
Jan 29, 2003
164
257
...If Apple were to ignore their stated promise, that would open Apple to more international lawsuits on 'breach of contract' and 'breach of promise,' something certain anti-Apple zealots would love to see.

There's zero exposure here. There is no requirement nor any "contract" to offer this for sale anywhere at any time. International customers want this as badly as we do here, but the only obligation that places on Apple is one of managing customer expectations. Certainly nothing that could rise to breach of anything actionable...
 

Silverfist

macrumors member
Jun 19, 2008
64
1
Silicon Valley
When you plan a product and forecast demand, you have to set up proper capacity as well. If your wrong on your forecast, it's hard to add new capacity just like that. Means ordering larger quantities of components for that product too. The supplies of those parts also planned capacity based on the forecast sales and have to adjust as well. It's more a supply chain and capacity issue than a marketing ploy.

This is almost certainly the case; it's not like Foxconn can magically grab all of the necessary components whenever they want... if they need to ramp up production they need to allow time for all of the subcontractors to ramp up their own production.

That's the battery manufacturer, the backlighting manufacturer, the screen, the case, etc -- and more than likely, a bunch of those items also have more than one source involved.

.

Slightly off topic, but we're going to be returning our second 3G iPad today -- our first one got lost in transit so we bought one in an Apple store; the original one finally arrived and we'll be returning that for credit. Nice to know I'll be easing the shortage in a miniscule way. :D

.
 

Vulpinemac

macrumors 6502a
Nov 6, 2007
677
0
There's zero exposure here. There is no requirement nor any "contract" to offer this for sale anywhere at any time. International customers want this as badly as we do here, but the only obligation that places on Apple is one of managing customer expectations. Certainly nothing that could rise to breach of anything actionable...

Sorry, James, but there are contracts and there are promises; the Apple Store is not the only venue the iPad is selling through.
 

Vulpinemac

macrumors 6502a
Nov 6, 2007
677
0
This is almost certainly the case; it's not like Foxconn can magically grab all of the necessary components whenever they want... if they need to ramp up production they need to allow time for all of the subcontractors to ramp up their own production.

That's the battery manufacturer, the backlighting manufacturer, the screen, the case, etc -- and more than likely, a bunch of those items also have more than one source involved.

.

Slightly off topic, but we're going to be returning our second 3G iPad today -- our first one got lost in transit so we bought one in an Apple store; the original one finally arrived and we'll be returning that for credit. Nice to know I'll be easing the shortage in a miniscule way. :D

.

You could probably sell it for a pretty profit on one of the online auction sites.
 

charlituna

macrumors G3
Jun 11, 2008
9,636
816
Los Angeles, CA
This whole distribution process from overseas factory to store shelves takes about three to four weeks considering point of sale.


Not for Apple. I have a friend that works for the company in retail shipping/receiving. He says that they never stop building the units and can get them from factory to floor in two weeks tops, one week being typical.

The only time this doesn't happen is if there's a supply issue on parts. Which happened with the 27 inch imac at least twice.

He believes, and I believe it to make sense, that part of the current run is being stockpiled for the international roll out. To make up for delaying the later release.

Also, he said that new stock is being delivered and has been since Saturday. They aren't doing huge 200 box deliveries for all sizes because they didn't know if the 3g would take off and the stores don't have unlimited storage (and are having to get ready for Back to School etc with stockpiles of laptops) But every day they are getting a little bit of something, just not always what folks on the boards are waiting for. It all depends on the waiting lists, typically they will get shipped whatever is their longest list first.
He also said that they go from customs to a collection of 'hubs' around the country and hub to store is 2 days tops. Excluding Saturday and Sunday when Fed Ex etc don't freight. but there are sometimes Saturday express deliveries. so a store might have some boxes ship out this afternoon and arrive tomorrow with the bulk showing up Monday morning in Freight. then Monday Express and Freight shows up Tuesday etc.
 
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