Apple Retail Stores Run Dry of iPad Wi-Fi + 3G Models

[JediZenMaster]

This is awesome and even though the nay sayers will be pulling their hair out to find rebuttals to discredit this news.

The iPad is a total success love it or hate it and i love mine

 

[Consultant]

Well, considering it's the first of its kind....

Nope, Microsoft has been trying to sell windows tablet for a DECADE now, and failing for a decade.

And various companies such as Amazon, Barns and Nobel also have their own products in a similar price range.

 

[Lesser Evets]

A short supply simply means they are not making enough. High demand simply means it's marketed well. Neither NECESSARILY mean anything about usability after only a month of availability.

Yeah, because after a month of availability and after months of naysaying such as this, it would continue to sell well despite being an utter turd.

They've made hundreds of thousands and sold hundreds of thousands. It isn't like this product is that rare, just that demand is out pacing production. Not so unusual. Perhaps manufactured rarity, but let's put it in context:

People love the product. They use it, they brag about it, they find it useful. It sells extremely well.

 

[foobarbaz]

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).

Yeah, because nothing increases sales more than ... errr ... not selling them?

Seriously? How many people do you know whose interest is raised by the fact that other people can't buy them right now? And how many people spend their money elsewhere because they need something right now?

If you can make a sale, make it now. Don't wait for the competition to appear... Apple isn't stupid.

 

[JakeTheMac]

I guess the iPad isn't worthless with all these HTML 5 sites and over a million sold. I bet they will sell two million in the time it took for the iPhone to sell a million. But the iPhone did not have as many features and Apple had a lot less customers. If it wasn't for the iPhone I would never have bought a Mac and I know a lot of people that would agree with that.

 

[gwangung]

Yeah, because nothing increases sales more than ... errr ... not selling them?

Seriously? How many people do you know whose interest is raised by the fact that other people can't buy them right now? And how many people spend their money elsewhere because they need something right now?

If you can make a sale, make it now. Don't wait for the competition to appear... Apple isn't stupid.

Really.

What these "business experts" don't seem to get is that not being able to meet demand means YOU'RE LEAVING MONEY ON THE TABLE. The name of the game is to make money. And if you run out and can't meet demand, you KILL DEMAND ON A LONG TERM BASIS.

Granted, I can see gauging it so that, at worst, you're 1-2% down; i.e, a few customers you leave out in the cold. But if you leave too many potential customers without your product, THAT'S MONEY YOU'RE NOT MAKING.

That's stupid. And Apple is not stupid.

 

[Andronicus]

A short supply simply means they are not making enough. High demand simply means it's marketed well. Neither NECESSARILY mean anything about usability after only a month of availability.

Calm down......

Tony

A short supply simply means they are not making enough? I think the short supply might be due to the fact they sold 1 million in 28 days lol.

 

[samwight]

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

Still, when I order a MBP, it weighs about the same per unit cost, and I get free shipping by air from China.

The cost of shipping bulk by air from China is a few bucks per pound, and it may be worth it to satisfy a red hot demand, rather than risk letting it cool.

 

[HobeSoundDarryl]

Where are the nay sayers now? iPad is way ahead of the competition in term of usability and most people realize the difference.

I'm (also) one of those naysayers... who didn't buy it because it lacked a few key (IMO) features that should be there (and I expect them in version 2+). But I will say this: I've visited the local Apple store over the last few weeks and noticed one glaring change to "norm". Normally, the shoppers are fairly well dispersed around the store. And normally, the iDevice shoppers were pretty nicely spread between the iPhone and Touch tables.

Since iPad, those tables have been nearly abandoned with people waiting behind other people to play with iPads. It's interesting that they could just go to free iPhones and Touches and probably play with the same demo apps, but instead they want to use those demos ONLY on iPads.

I'm still not buying one myself until version 2+ fills in a few holes (IMO), but based on this subjective eval, Apple sure has a lot of people interested in this new toy.

 

[Tones2]

A short supply simply means they are not making enough? I think the short supply might be due to the fact they sold 1 million in 28 days lol.

They are only running out of the 3G models, NOT the WiFi models. They didn't sell a million 3G models. They just didn't make enought 3G models.

Remember that Tickle Me Elmo also sold millions and people went crazy for it in it's day for a SHORT period, but then fizzled like a lot of overhyped product.

BTW - I actually HAVE an iPad. I do like it, but it's just a big iPod Touch really. It's fine certainly and there's nothing wrong with it being just a big Touch, but not worthy the frenzy that's is perceived currently. The size is really the ONLY innovation here that didn't exist before in the Touch. Obviously, size seems to be important to people, but I think after some time after the initial frenzy of having a new toy, people will figure out that this is an expensive and too heavy book reader, not as good a game machine as the PSP, and not have the convenience of always having it with you like the iPhone. It'll fizzle out in a couple on months - not completely, but to normal netbook-ish sales levels.

Tony

 

[SiPat]

The best thing Apple can do right now is dump the 16GB version, offering just the 32/64GB versions and adjusting prices downwards by $50 or so. Spread the demand between the 32GB and 64GB versions instead of the 16GB and 64GB.

 

[gnasher729]

Seriously? How many people do you know whose interest is raised by the fact that other people can't buy them right now? And how many people spend their money elsewhere because they need something right now?

Speaking only for myself, I hate, absolutely hate, going to a store and not getting what I want. I won't get an iPad unless I can go to the Apple Store, and they tell me I can get any model I want, as many as I want. I bought a Wii when they had lots of them in the store with nobody particularly bothered to get one.

 

[pizz]

I guess people have money to burn

 

[jpn]

store location please

can you pls tell us where the location is of the store pictured in the lead article?
amazing architecture.

 

[ThunderSkunk]

I've been trying to get even one since they came out. San Diego has been sold out ever since.

I keep thinking, "I should just order them online from Apple. ...but surely in the two weeks it'll take to get here, I could have gotten one from a store." Nope.

We've ordered a few on ebay, at an insane price, but are waiting to order the other 16 we need at retail. Till then, we'll stick with our wifi models.

 

[vini-vidi-vici]

I went to Best Buy yesterday to look for a 16GB WiFi. This is a big store, and was pretty much empty, but over at the iPad display people were lining-up 2 deep to play with them. Of course, they were out of stock. Called all the local Apple stores (there are 3 in the area) - they're all out, don't know when they'll get more...

There's simply huge demand out there.

I'm going to order it via apple.com

 

[JediZenMaster]

They are only running out of the 3G models, NOT the WiFi models. They didn't sell a million 3G models. They just didn't make enought 3G models.

Remember that Tickle Me Elmo also sold millions and people went crazy for it in it's day for a SHORT period, but then fizzled like a lot of overhyped product.

BTW - I actually HAVE an iPad. I do like it, but it's just a big iPod Touch really. It's fine certainly and there's nothing wrong with it being just a big Touch, but not worthy the frenzy that's is perceived currently. The size is really the ONLY innovation here that didn't exist before in the Touch. Obviously, size seems to be important to people, but I think after some time after the initial frenzy of having a new toy, people will figure out that this is an expensive and too heavy book reader, not as good a game machine as the PSP, and not have the convenience of always having it with you like the iPhone. It'll fizzle out in a couple on months - not completely, but to normal netbook-ish sales levels.

Tony

Actually the article mentions WIFI versions too and if you want to discount it like tickle me elmo that's fine. But i think your wrong. Alot of universities are using ipad's now and there are thousands of things you can do with it.

IMO the only reason the ipad would be a giant ipod touch is if you use it as one.

I Draw on mine, I make notes , Update my blog ,Read the actual full print of the newspaper on the pressreader app (Which would be hard to do on an ipod touch), Not to mention dozens of other things,Watch movies on Netflix.

A Device is what you make of it if you let it sit there and do nothing then it will be nothing. But the ipad is opening up portable possibilities.

And if it was truly just a big ipod touch i doubt people would spend hundreds of dollars on it, That it would have been mentioned all over TV which is something that the ipod touch never got, And that if it was a Giant ipod touch that it wouuld have sold out

 

[dafranca]

The shortage is happending because IPAD ILS screen, those display was never made on scale, Apple has contract with Samsung, LG and Seiko Epson for ILS screen, but suppliers has a limited to ramp production in a short time.

 

[jimbobb24]

I admit

Though I am positive about the iPad in general I really did not think it would be a hit. I want one to combine with Papers and read academic PDFs and I am working with my department to develop software for us to be with patients that will allow us to do more automated research, but I was not sure about the general appeal. Every time I go to the store to play with one, I really want one and my kids are begging me for it (its TouchPets I think). I am impressed, and I guess that is one more reason that those people making those decisions make the big bucks. The relatively low price is a hit as well, I would never consider it at $999 as some feared, ironically at $499 I am plotting to someday own 2.

 

[SBeardsl]

The best thing Apple can do right now is dump the 16GB version, offering just the 32/64GB versions and adjusting prices downwards by $50 or so. Spread the demand between the 32GB and 64GB versions instead of the 16GB and 64GB.

A price cut is something you do when you start to have a warehouse full of unsold product. When you can't make them fast enough to meet demand there is no reason to drop the price or cut your margins by giving more for the same price.

If sales are starting to stagnate in Oct/Nov heading into the holiday selling season they might do a feature bump or a simple price drop but as long as they are selling OK they will just run though the season with the lineup (and margins) they have and see what the market looks like in January.

I think they learned their lesson with the iPhone price drop fiasco and they will never again teach their buyers to 'wait three months for the price drop'. They are still paying the price for that misstep.

 

[SBeardsl]

The shortage is happending because IPAD ILS screen, those display was never made on scale, Apple has contract with Samsung, LG and Seiko Epson for ILS screen, but suppliers has a limited to ramp production in a short time.

I have no inside information but to me this seems like the best guess. The screen is the most advanced and hard to manufacture part of the iPad, if anything is impacting Apple's supply chain that would be it.

 

[rickeym]

Wow, nice summary.

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.

 

[firewood]

What these "business experts" don't seem to get is that not being able to meet demand means YOU'RE LEAVING MONEY ON THE TABLE. The name of the game is to make money. And if you run out and can't meet demand, you KILL DEMAND ON A LONG TERM BASIS.

Depends on the product. DeBeers has made gazillions long term by reportedly artificially limiting the supply of sparkly rocks. Same with some toy companies and their hottest product just before the holiday season. A lot of economic supply and demand theory depends on the decisions of rational actors... which has very little to do with the behavior of actual humans.

 

[INeedAMacBook]

I went to the Apple retail and played with one. For sure it's fun.
Can't wait to buy one.

I just wish a way to tether my iphone to the iPad. it's sucks having to pay another $30 for data on my iPad on top for what I pay already monthly on my iPhone.

same, thats why im thinking of jailbreaking, but only when we get to 4.0, because then i wont have to have a load of jailbreaking apps like winterboard and multi-tasking apps, but with 4.0 i only have to have miwi, so its less likely to mess up, becuase wniterboard usally messes up

 

[INeedAMacBook]

A price cut is something you do when you start to have a warehouse full of unsold product. When you can't make them fast enough to meet demand there is no reason to drop the price or cut your margins by giving more for the same price.

If sales are starting to stagnate in Oct/Nov heading into the holiday selling season they might do a feature bump or a simple price drop but as long as they are selling OK they will just run though the season with the lineup (and margins) they have and see what the market looks like in January.

I think they learned their lesson with the iPhone price drop fiasco and they will never again teach their buyers to 'wait three months for the price drop'. They are still paying the price for that misstep.

alot of people really like he 16gb ipad, its the cheapest and 16gb is enough for them because they don't use it for music much