Apple CEO Tim Cook: We're 'Working Hard' to Remedy Apple Watch Supply/Demand Imbalance

[joshdammit]

They should have had people place orders so that they could know what combinations would be most popular. Then they could have canceled all those orders and ramped up production based on what they learned from the trial run.

Then they would have been able to meet demand, based on real data about what people would order if they were allowed to order whatever they wanted (before they were told that it was just a test to determine what people who didn't know they were being tested would do).

They did exactly that. It was called going online and selecting which watches were your favorites. Apple read into all of those Hearts people gave to the watches they liked, to help gauge popular models.

Not everybody is as concerned about a prepreorder that amounts to basically market research as much as nerds on these forums do.

 

[josephebacon]

Still waiting since 1207 AM 4/10 for my 42 mm Pink Sport Band here in Los Angeles.

It's still stuck in "Processing Items" Limbo and my credit card hasn't been charged for anything...

 

[omakone]

Not nearly as many as you would think. They were quick to announce selling over 300k iPads the first day it went on sale in 2010, the last time they released a new product. If the Watch sold anything significant, you could bet there would have been an official release already. They aren't saying because 1) sales are probably terrible and they don't want anyone to know so they can still create an illusion of far more demand then supply. 2) if they came out saying they only sold 100k but the wait is 4-6 weeks, it would make them look very incompetent. Its rumored the new MacBook only sold 50k the first weekend and they can't even get enough of the 1.2GHz to those who ordered one at launch. Things have really gone off the rails since Steve died.

https://www.apple.com/pr/library/2010/04/05Apple-Sells-Over-300-000-iPads-First-Day.html

Actually the reason that Apple did not announce sales numbers is that do not count a sale until the product is in the customers hand. Based on recent article they were only able to produce and ship about 350,000 to 400,000. I would be willing to be by the end of next week we will get a tweet or message saying they have sold over 1 million apple watches.

 

[balconycollapse]

Hope we see a red (product red or otherwise) strap in the future

They're saving that for Bono to introduce

 

[Keirasplace]

Actually the reason that Apple did not announce sales numbers is that do not count a sale until the product is in the customers hand. Based on recent article they were only able to produce and ship about 350,000 to 400,000. I would be willing to be by the end of next week we will get a tweet or message saying they have sold over 1 million apple watches.

The report is 350-400K in the US, they shipped a lot elsewhere too (9 countries!). I'd expect 700-800K worldwide watches shipped to customers Friday.

 

[blahblah100]

Actually the reason that Apple did not announce sales numbers is that do not count a sale until the product is in the customers hand. Based on recent article they were only able to produce and ship about 350,000 to 400,000. I would be willing to be by the end of next week we will get a tweet or message saying they have sold over 1 million apple watches.

Considering they've repeatedly announced the numbers related to iPhone pre-orders, I believe you are incorrect.

 

[kerrikins]

Not nearly as many as you would think. They were quick to announce selling over 300k iPads the first day it went on sale in 2010, the last time they released a new product. If the Watch sold anything significant, you could bet there would have been an official release already. They aren't saying because 1) sales are probably terrible and they don't want anyone to know so they can still create an illusion of far more demand then supply. 2) if they came out saying they only sold 100k but the wait is 4-6 weeks, it would make them look very incompetent. Its rumored the new MacBook only sold 50k the first weekend and they can't even get enough of the 1.2GHz to those who ordered one at launch. Things have really gone off the rails since Steve died.

https://www.apple.com/pr/library/2010/04/05Apple-Sells-Over-300-000-iPads-First-Day.html

Apple said way back in October that they weren't going to break down the Watch sales.

 

[Arran]

They need to work harder! It isn't right that my friend who ordered the exact same model as me (38mm Space Grey) but did it in store on the day AFTER preorders and has already received it when he wasn't supposed to get it til june. Yet I ordered at 3:02 am and was confirmed in an email at 3:04 am and it was pushed til May 13-May 27.

Where is my watch apple!!!!!

I have this crazy theory that the largest number of returns come from the folks who stay up till ridiculous hours competitively pre-ordering expensive gizmos, sight-unseen. It doesn't seem very rational, does it? Exciting, yes. Sensible, no.

So maybe Apple really doesn't want to encourage that sort of impulsive customer, because processing returns is a huge cost for any retailer. For the watch, it likely wipes out any profit even if the customer subsequently buys a different model. And if the customer doesn't buy one at all, then the whole exercise is a net loss to the retailer.

 

[thelonelylimo]

the iPhone had 500 apps. available at launch?

 

[Aluminum213]

They need to work harder! It isn't right that my friend who ordered the exact same model as me (38mm Space Grey) but did it in store on the day AFTER preorders and has already received it when he wasn't supposed to get it til june. Yet I ordered at 3:02 am and was confirmed in an email at 3:04 am and it was pushed til May 13-May 27.

Where is my watch apple!!!!!

You made the mistake of thinking any electronic consumer device was worth staying up till 3am for

 

[3bs]

Yep, US. I didn't realize the situation was so dire abroad. I'm wondering if ordering the Space Grey had anything to do with my fast fulfillment. Are you seeing shortages in all colors overseas?

No ones order has shipped based on people's posts on MR.

Meh, Apple is a US company. I think it's perfectly appropriate for the US to get first dibs.

Then why open "pre-orders" for other countries.

 

[cmwade77]

It will balance out very quickly, as demand drops dramatically because the watch does nothing that a phone can't do.

 

[IbisDoc]

Considering there have been NO shipments of link bracelets, that would make the supply/demand ratio zero. Tim needs to create a new talking point.

 

[mikefla]

in response to "...Ordered minutes after midnight...." and every other post that says "ordered at 2:03" or 3:06 or whatever: Instead, please tell when your confirmation email from Apple is timed. All the rest is just rumor, like how big the fish you caught was, or how long that snake or alligator was, or how far you drove that new golf ball. Confirmation times are something we can all compare.

Confirmation time!

In that spirit: The confirmation email for my order for Apple Watch Sport 42mm Space Gray Aluminum Case with Black Sport Band shows 3:17am (EST); my expected arrival date started at May 13-27 and remains there today. (I was charged for Apple Care days ago, which seems odd since the product won't ship until weeks later) I'm waiting on a band, too, and it's showing May expected arrival.

I think the email confirmation means nothing! Their systems where overloaded I received my confirmation email minutes later after I placed my order. Besides there could be other delays in the processing of the email.

-Mike

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Ordered mine at 12:12 am and ship date still showing May 13 - 27... no update at this moment.

By the way, what do you guys think of adding a bumper case and screen protector for the watch or will you use the watch as is (naked).

Oh no, please don't do that! It's a watch, wear it enjoy it! Take it back to the store is it falls apart on you with normal usage.

-Mike

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I'm more pissed that the online store came up way after the app store app went live on the phone, had that not been the case, I'd probably have one in hand right now!

I was trying both, the store app on the phone came up first and that is what I used to place my order. Don't think it makes any difference.

-Mike

 

[BvizioN]

You would have thought that the "Favorite"-ing option in the Apple store would have helped them predict the demand quantities.

You mean the option that people kept changing every day? There were people who werent sure what to get even minutes before preorders. Or the ones who did favor almost all the models.

 

[whatos]

Apple tends to do one of two things. They go silent, and if that doesn't work the way they want, then they get creative, convincing, and carefully craft a story to sell to us.

I don't know of a single company that's as brilliant when it comes to storytelling. Apple has their act down so perfectly that one glance at their hoard of cash proves they can pull off amazing tightrope acts and we pay them handsomely.

Caught out, Apple underestimated demand? Not a chance! The resources, the skill, the experience, every single aspect of this launch just like the many that preceded it, is under complete control... Apples got things working just as they planned.

Smooth... not really, but that can be attributed to their choice to cheat their own stores out of the opening launch day sales. A departure that while risky, Apple could easily afford to experiment with.

Now it's Tim doing just a little damage control. In a matter of days he'll right the ship and all will be well.

 

[Michael CM1]

"Hey guys, let's slow it down on the Edition line. We're not going to sell 5 million of those this year so I can retire and let Jony Ive answer all those dumb questions about innovation."

 

[dexterbell]

Apple said way back in October that they weren't going to break down the Watch sales.

Interesting they are lumping it in with iPods and ATVs, other devices that don't sell very well. They must have been anticipated it not selling very well.

 

[powerslave65]

After hearing Cooks flat affect during the quarterly financial results call when asked about the watch I'd say somethings up. I respect him not showing his hand on the Apple Watch numbers though. Any info that is not related to this quarter if misconstrued could hurt investors. Angela made a good decision not selling in stores if supply was limited, it was the right thing to do. However parading around the limited stock at a handful of goofy poser boutiques was a decision that would have taken even more guts not to do.

 

[hunterweston]

Apple Inc are the best story tellers in the competition. They work insanely hard and always come up with something new, and keeps the price almost twice in comparison to its competitors. And their inventory has a limited stock, ever. You draw your own conclusion.

 

[Faelan]

Europe left in the dust it seems

sigh

Yeah, so I may be able to buy a 1st generation watch of questionable use in late june in my country? At an inflated price no less, since the dollar has skyrocketed vs the euro.

Yeah... right...

I'll just wait for 2nd generation then. Maybe by then it'll be worth it.

 

[fretdevil]

Still "Processing"

Order #1 12:03 am Confirmation email 12:05
1 - 38mm Sport-White Sport Band - Delivered 4/24
1 - 42mm SS-Milanese Loop - Still "Processing" 4-6 Weeks - 5/13-5/27 Delivery

Order #2 12:03 am Confirmation email 12:05
2 - 42mm SS-Milanese Loop - Still "Processing" 4-6 Weeks - 5/13-5/27 Delivery

I honestly think this was a "kickstarter" campaign in disguise!

Note to self:

It's just a watch!
It's just a watch!
It's just a watch!
It's just a watch!

 

[dumastudetto]

I can really understand the frustrations of people still waiting for their orders to ship. All I can say is Apple Watch is totally worth the wait. It has completely reset my expectations about what a watch should be. The way it seamlessly integrates and communicates with my iPhone is just remarkable.

Battery life is far better than I expected/feared. It's never come close to running out of juice before I was ready to charge it.

Most of my essential apps already have updated to support Apple Watch, and most developers have done a phenomenal job in building experiences for this new device.

So stay patient. When you get your watch, you'll love it. It really is an essential purchase for everyone already invested in the iOS ecosystem.

 

[James Baldwin]

The report is 350-400K in the US, they shipped a lot elsewhere too (9 countries!). I'd expect 700-800K worldwide watches shipped to customers Friday.

According to 9to5mac Apple only shipped (note, not delivered) 22% of 1.7 million (i.e. 370,000) as of Sunday.

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I can really understand the frustrations of people still waiting for their orders to ship. All I can say is Apple Watch is totally worth the wait. It has completely reset my expectations about what a watch should be. The way it seamlessly integrates and communicates with my iPhone is just remarkable.

Battery life is far better than I expected/feared. It's never come close to running out of juice before I was ready to charge it.

Most of my essential apps already have updated to support Apple Watch, and most developers have done a phenomenal job in building experiences for this new device.

So stay patient. When you get your watch, you'll love it. It really is an essential purchase for everyone already invested in the iOS ecosystem.

Are you an Apple customer rep by any chance? You sound just like them

 

[stanhope]

Ordered mine at 12:12 am and ship date still showing May 13 - 27... no update at this moment.

By the way, what do you guys think of adding a bumper case and screen protector for the watch or will you use the watch as is (naked).

I ordered the bumper....just in case lol....I have always done well selling on eBay the old when buying the new. It is because my items are in excellent condition.