Apple 'Blown Away' by iPhone 5 Pre-Orders

[marksman]

Apple is like a crazy religion, or political party now... they just pump out nonsensical spin and everyone laps it up without any fact checking.

Faith should be reserved for things much greater than just a telephone.

Hell, the claim of the iPhone 5 being the thinnest smart phone ever has already been disproved, but does it stop them from advertising that "claim"? Of course not... and do people believe them? Sure they do... because they're Apple.

Apple isn't a company, they're not concerned with profits, they're just our friends and they want us to be happy.

Bitter android fans who know even the top selling android handset will only sell some 10 million units macs Mac rumors cry.

So when apple has the four too selling smartphones in 2012 will bird still be the word?

 

[Zetaprime]

Maybe Foxconn just can't produce more than that after the whole phone is finalised... Which I assume would be a maximum of a month before the announcement... And expanding manufacturing won't make sense because then they will be runnin below capacity after the launch frenzy is over, so it won't be a smart investment... So rather sell out within 2 hours at launch day and keep a 2-3 week delivery time for the rest of the launch day orders and you have perfect balance for the rest of the year when the demand comes back to normal...

I don't think anyone in this forum has ever run a manufacturing facility... I do... So just my 2 cents...

Why don't thy just set the launch day to a date when they'll have sufficient stock on hand?

 

[marksman]

I addressed that in my response and will VERY happily return to discuss them with you as soon as they available... why? Because I am confident in my conclusions.

Will you go away when you are wrong, which is 100% the reality.

Of course you will try to spin your way out of it.

 

[Geckotek]

Then they weren't "blown away" either way now were they ? "Blown away" means they didn't anticipate this. That's just a plain ridiculous notion, everyone knew it would end up like this.

If you want to argue they don't held back stock that's fine. I still think they do, not for long, just a few days, spread it around, making sure to smile for the cameras and all. But to argue they didn't see this coming ? Please.

I agree they weren't blown away. Marketing speak.

Perhaps if you rephrased your statement I could agree. I think they "allocate" a specific number for pre-orders and a specific number for stores. Each partner also gets an allocation. I don't think this is done intentionally to hype up the consumer demand or the media. I think a lot of factors determine how many will be allocated for each, including what the carriers can handle in a single day. But I do think the market department will take an opportunity to spin any news opportunity they can.

 

[j4zb4]

I agree with all of this. I doubt that Apple is intentionally limiting stock.

1) Factories can only produce phones so far in advance.
2) Apple is not going to invest in a new factory just for the launch surge (like j4zb4 said); that doesn't make sense in any way.
3) Factories can only produce phones so fast.

How the hell does Apple make money by LIMITING what they sell? They don't make money off unsold phones. My theory: they make as many phones as they reasonably can (factoring all of the above) - knowing that they will most likely sell out - and benefit from the resulting press.

Does Apple know they will sell out? Probably. Are they INTENTIONALLY limiting stock? No. They don't make money by not selling products.

True... Any business will want the cash to roll... But one thing I have learnt on this forum... No one reads, if they do read they fai to undertand and even if they do understand they are just to butthurt to accept it...

A meme image I saw on FB today makes perfect sense... It said "Common sense is so rare nowadays that it should be declared a super power"...

Why don't thy just set the launch day to a date when they'll have sufficient stock on hand?

Buddy holding inventory for such a long time isn't smart either... You lock in your money on the goods you have produced and you spend extra on warehousing...

 

[Geckotek]

Why don't thy just set the launch day to a date when they'll have sufficient stock on hand?

Because its bad business to build a product and let it collect dust in a warehouse.

 

[Zetaprime]

Apple and other companies should just keep quiet about launch dates until they have sufficient stock on hand. Then call the press and announce the launch.

 

[KPOM]

Then they weren't "blown away" either way now were they ? "Blown away" means they didn't anticipate this. That's just a plain ridiculous notion, everyone knew it would end up like this.

If you want to argue they don't held back stock that's fine. I still think they do, not for long, just a few days, spread it around, making sure to smile for the cameras and all. But to argue they didn't see this coming ? Please.

I'm sure they figured they would sell out of pre-orders within hours of launching. I don't think they figured it would sell out within ONE HOUR of launching. If they had known that, they may have put it into production a little bit earlier to have more on hand, or more realistically they may have modified their launch schedule.

 

[Zetaprime]

Because its bad business to build a product and let it collect dust in a warehouse.

But it's not going to 'collect dust'. Once announced the customers will be buying them.

 

[Jbaffoh]

Geez guys, it's easy. I don't get what there is to not understand :

1. These launches result in a massive demand burst over the first few days. Demand then goes down to normal levels. This is predictable, Apple will sell phones very quickly in the first few days.

2. If you have a possibility of making 12 million phones for launch, anticpate a burst of 8 million to cover pre-orders and initial launch week sales and know you'll sell the other 4 millions over the course of the next 2 weeks easily then you can skip to 3 :

3. Limit initial offering to 6 million phones. Make sure to allocate a low number to initial pre-orders, around 1 million or so units so that the website quickly shows "Available in 1-2 weeks". This creates scarcity. Send the remaining 5 million to stores, making sure that your big markets get barely enough to cover demand. The "website said they ran out!" scare is in effect, the line-ups will form to get that coveted device first day since it's now impossible online.

4. Launch day, sell out of the remaining 5 million, making sure to leave a few sad faces for the cameras. Trickle extra inventory from your extra 6 million into stores each day, feeding the people who failed to get it on launch day.

5. After 2 weeks, you've sold the same 12 million phones to the same 12 million people had you offered the 12 million units up front. You've also probably managed to sell an extra 2-3 million off the media campaign covering the line-ups and general insanity.

You've lost nothing. You've gained free publicity. Heck, I'd do it if I had a business. No one is saying to sit on inventory long term, just not to dump it all into the market in one go.

Meanwhile, you're paying extra sales employees on the floor, keeping the retail stores open longer hours, and creating other unnecessary costs and inefficiencies that would be minimized if they could fully satisfy online preorders. That's a lot of unnecessary overhead cost to create a buzz that already existed in the weeks leading up to the announcement. I don't buy it.

 

[Geckotek]

Apple and other companies should just keep quiet about launch dates until they have sufficient stock on hand. Then call the press and announce the launch.

You clearly haven't considered all aspects of your argument.

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But it's not going to 'collect dust'. Once announced the customers will be buying them.

Do you think the first iPhone and the 5 millionth iPhone magically roll off the production line on the same day?

Edit: do some research on JIT production. It's in Apple's best interest to get the iPhones from the factory and into consumers hands as quickly as possible.

 

[lewisburgess]

Maybe I got 'lucky'... I ordered my white iPhone 5 32GB late on Friday afternoon here in the UK from Apple's website. At the time the 'shipping date' was 2-3 weeks, then 2, then 'October' on my order. I got an email this afternoon to say the phone will be arriving on the 21st.

Perhaps they can't count? Oh well, my wife will be upset I've been spending again, sooner than I thought

 

[marksman]

In what way does holding back stock help apple? sure, it may "create hype," but in the long run, it keeps iPhones out of customers hands. (and most importantly, their money still in their pockets.) Why must 'nay-sayers' always doubt that a popular product can actually sell units without creating conspiracy theories?

When it comes down to it, the average customer will see a shiny new iPhone and want to buy it asap. that combined with the apple store app working almost flawlessly and apple's website not crashing as much as last year, i can see the possibility that they might be selling iPhones faster than expected.

just my opinion though.

Especially because unlike anyone else apple shares their numbers and they have never lied or mislead with their sales info.

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"I can't wait till the Samsung SIV comes out. I'm gonna camp outside in line to get it"- Nobody

But Samsung will talk about it selling well (all 500k first week units) but never actually release numbers

 

[j4zb4]

Apple and other companies should just keep quiet about launch dates until they have sufficient stock on hand. Then call the press and announce the launch.

And how will that make a difference...?

But it's not going to 'collect dust'. Once announced the customers will be buying them.

As soon as your warehouses are full you want to start selling because you want to start the cash inflow... You dont want to keep your warehouses stuffed for a long period as I said in my previous post... It locks in your money as you have produced it and are not selling it... Also you pay a hefty amount for warehousing...

 

[Zetaprime]

You clearly haven't considered all aspects of your argument.

----------




Do you think the first iPhone and the 5 millionth iPhone magically roll off the production line on the same day?

Edit: do some research on JIT production. It's in Apple's best interest to get the iPhones from the factory and into consumers hands as quickly as possible.

I don't need to "consider all aspects of my argument" This isn't rocket science and lives aren't hanging in the balance.

 

[macosxuser01]

What I'm trying to say is when iPad came out consumers starting buying tablets (mainly iPads but some Android tablets like the Asus transformer, Samsung whatever it's called). The same thing happen with the iPod. Yes there were other portable mp3 players on the market but when iPod started selling like crazy the portable mp3 market it took off such as the Zune not as successful as the iPod but you would see some people with them. And that's what I'm saying is whenever Apple comes out with something new like that iPod/iPad the consumers start buying those types of products not just Apple. For example, when iPad came out alot people start buying them and then few months later I had friend who bought a Android tablet. That was his first tablet he ever got. And I bet people who have bought tablets that are not apple bought them after the release of when the iPad came out.

 

[sulpfiction]

lol, we all knew of the manufacturing issues they've had, and as I called a few days ago, they would use that to spin their sales...

I don't doubt the 5 is selling VERY well, better than the 4s however?

Not a chance, not a chance in the world.

I'd wager you any amount of money that the 5 crushes the the 4S in sales. Are u insane? Do u think apple would purposely short stock the phone to draw media attention and publicity? Or to create a demand? No way possible. I'd be the stock levels were higher at this launch then any other. Apple is about breaking sales records. Not short stocking it. Just admit that apple is the king of the mountain right now. NO ONE can even come close to touching them. And it won't last forever, most likely, but right now, there's Apple, and then there's everyone else.

 

[AmpSkillz]

Hell, the claim of the iPhone 5 being the thinnest smart phone ever has already been disproved, but does it stop them from advertising that "claim"? Of course not... and do people believe them? Sure they do... because they're Apple.

Thinner phones:

ZTE Athena (Not Available)

Huawei Ascend P1 S (Not Available)

Oppo Finder (7.65 at Thickest Point)

All modern Android phones, all "smart phones".

As for Apple sales figures? Hah, time will reveal all... as I said, did it sell well? OF COURSE. Did it sell better than the 4s, not a chance.

Apples not dumb, it's all about perception, we're all greedy little pigs to them, make you feel like you're left out and you'll dance on your own mothers grave to keep up with the Jones'.

Wait and see.

As long as you're comparing future/unreleased smartphones like the Huawei Ascend P1 S and ZTE Athena (which are only their advertised thinness at certain point like the Droid RAZR was), why not add in the 2016 Samsung Galaxy S XI Deluxe HD Infinity, I hear it's only going to be 4.1mm thick except for the 8.5mm hump around the audio port and camera

This leaves the only currently available smartphone contender, the Oppo Finder, a china-phone with no unique features other than it's "claim" of being 7.1mm thin (5mm thinner than iPhone 5) at it's thickest point . If that "claim" is true, then Apple may have been wrong in the case of this one barely known phone at the time of Apple's "worlds thinnest smartphone" claim or perhaps more importantly, Fridays 9/21/12 actual release date.. but when i look at these pics of the Oppo Finder next to an Iphone 5 and visially compare the thickest points, the Oppo still looks thicker to me..

I have not yet heard of anyone actually having one and measuring it though

UPDATE:

ok so I overlayed them, and the iPhone 5 definitely looks thinner

maybe MacRumors should look into this because the droidboi blogs that isoft7 frequents have gone insane over this for a few 2 days now

UPDATE:
Turns out someone already measured the Oppo Finder camera hump and the iPhone 5 is apparently the worlds thinnest AVAILABLE smartphone. The Oppo Finder is measured at 7.65-7.7mm at its thickest point.

 

[pure3d2]

And what did Apple steal from Xerox?

That's a myth. Apple got permission ahead of the Xerox PARC visit. In addition, Apple provided compensation in exchange for the various Xerox PARC ideas such as the GUI.

The compensation for the Xerox PARC technology sharing deal with Apple was in the form of one million dollars of pre-IPO Apple stock.

 

[Thunderhawks]

But it's not going to 'collect dust'. Once announced the customers will be buying them.

You can't be in the field of sales or manufacturing.

There isn't enough space here to teach, but: (and this is what any company does)

Sales plans what they think they can sell. Since it's all guesswork, they use previous numbers, add new markets, consider a certain amount of saturation.

They also have to guess how many in white, black 16 GB 32 GB 64GB etc.

That info goes to manufacturing.

Manufacturing tells sales how long it will take to produce all of that.
(Factories and sub suppliers can only make X amount of pieces a day)

Manufacturing needs to be even keeled so employees don't sit on their hands when the big rush is over or they have to let go people.

At an introduction they then estimate a certain amount of pieces made for the spike.

Say the factories can make 1 million a day and a company thinks the initial sales are 5 million, the company takes a launch date multiplied by when production is ready and announces shipments will start the 15th (when the 5 million are ready)

Nobody in their right mind binds capital and fills up a warehouse to not ship , so consumers think there are shortages.

Especially Apple doesn't have to do that . Until they introduce a dud product, all their stuff sells immediately until they can make enough of it.

Then comes the day of truth and the company finds out what is really selling and they either planned wrong (and would sit on what they produced) or the
demand is so overwhelming that the factories can't keep up.

The "I must have it now or I am going to die" mentality of consumers who can't wait, does not play into any companies planning.

So, when Apple says they were blown away by the order numbers , it just means only one thing:

Whatever they planned to sell whether it was a conservative plan or an optimistic plan was sold out and exceeded their expectations/plan.

That is all there is to this conspiracy and mystical "They are holding back"
theory.

To pile 5 million phones into a warehouse to be able to make it look as if there is a shortage makes no sense whatsoever.

The money laid out to make these phones and the warehouse space would be wasted.

Apple is smarter than that!

 

[KnightWRX]

Meanwhile, you're paying extra sales employees on the floor, keeping the retail stores open longer hours, and creating other unnecessary costs and inefficiencies that would be minimized if they could fully satisfy online preorders. That's a lot of unnecessary overhead cost to create a buzz that already existed in the weeks leading up to the announcement. I don't buy it.

You need that extra staff and you'd need those extra long hours if you dumped all your stock in one go in the volumes Apple now produces for iPhone. Heck, except then you'd maybe be left with a couple of extra units, no line-ups and no media attention.

No, again, I don't buy it.

 

[Zetaprime]

Do u think apple would purposely short stock the phone to draw media attention and publicity? Or to create a demand?

Actually since the company's sole motivation is profit (greed), they will do whatever it takes to maximize their profit.

 

[thasan]

Apple and other companies should just keep quiet about launch dates until they have sufficient stock on hand. Then call the press and announce the launch.

Things never work that way.... This is true for virtually any company in the world

 

[j4zb4]

That's a myth. Apple got permission ahead of the Xerox PARC visit. In addition, Apple provided compensation in exchange for the various Xerox PARC ideas such as the GUI.

The compensation for the Xerox PARC technology sharing deal with Apple was in the form of one million dollars of pre-IPO Apple stock.

Also Xerox didn't know what to do with the technology... They thought it was a dead project and were gonna bin it anyways... If Steve wouldn't have insisted on a glimpse of the PARC when he visited Xerox we might not have had a GUI today... Because Xerox were about to dump it... Steve asked for the whole project to be given to him... Xerox people found it funny and gave it to him... Then were flabbergasted by what he turned it into... Then once when Gates visited apple in relation to Office for the mac Steve showed him the whole project in detail (It was almost complete by then) and that's how we had Windows...

You can't be in the field of sales or manufacturing.

There isn't enough space here to teach, but: (and this is what any company does)
.
.
.
.
.

The money laid out to make these phones and the warehouse space would be wasted.

Apple is smarter than that!

Couldn't have worded it better myself... Running a factory isn't as simple as trading or doing a 9-5 desk job... Ofcourse those jobs have their own challenges...

 

[marksman]

If anything, they just don't care about increasing production rate because the short supply increases excitement.

Keep in mind that Apple is a marketing genius company. Even near its start, Apple produced what is known by some critics as the greatest advertisement ever, the "1984" ad for the Macintosh. That's the best ad I've ever seen in my life. And they also created the "Mac vs PC" ad series, which I also think is great. I kinda hate the iPhone 4S ads, though.

Apple knows exactly how to make people go wild over the iPhone, and people always say that "I never knew I needed an iPhone until I got one." People like my grandma want an iPhone and have never used one before and hardly know what it is. Apple gets so much more advertising from the news than they do from their own iPhone ads.

Apple is the largest market cap company in the world with obscene cash reserves because of selling real products, not pretending to sell them.