LOL at 500 million iPads....That's $250 billion dollars at $499 each.... nearly half of Apple's net worth, just in 16GB wifi iPads.... That's not going to happen.
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Apple's iPad 3 Launch Putting Squeeze on Freight Shipments from China
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LOL at 500 million iPads....That's $250 billion dollars at $499 each.... nearly half of Apple's net worth, just in 16GB wifi iPads.... That's not going to happen.
A lot of people seem to be misunderstanding the logistical implications of the rumor. There is no way Apple is buying all the air freight capacity between China and the US. That's silly. Most of that capacity was committed a long time ago in long term contracts. What's rumored to be going on is Apple buying all AVAILABLE air freight capacity. That means the capacity that's not already committed to other things. That's still huge because it's China to the US. But it's just the available capacity. If Freight companies had most of their capacity available at any given time, they'd be making no money. They build capacity to serve know contracts plus some margin. It's that margin which Apple is rumored to be buying up.
I think the more logical explanation is stupidity. If I knew some (illegal) way to make profit even when paying way to much on eBay, I still wouldn't pay too much but only pay a better price, to make more profit.
There are people who think they are "winning" when they make the highest bid in an auction. If two of them get together, and each tries to "beat" the "opponent" and "win" the auction, you have a lucky seller. I bid what an item is worth to me; if someone else has the highest bid then they paid more than I was willing to pay, so that's fine with me.
3% is normal. Especially after going up a lot more recently. For most companies, 3% is a lot less than $15.
probably has to do with Congress wanting to investigate Apple and google. The MSM always picks a good time to report negative stuff about Apple (2 days before a major product announcement lol)
It will be interesting if this rumor is true and Apple does release the iPad 3 this week. I think Steve was always very cautious/paranoid about shipping early because of the potential for leaks. Tim may be more focused on getting the new products into customer's hands as soon as possible after the announcement. And since most of the iPad 3 details are known already, I don't think it's that big of a risk to ship early. But it definitely would be a different approach.
Perhaps they are. These may just be the ones destined for the B&M stores and online retailers.
I have always believed it is a mixture of products. Just like the original article stated.
"Products". more than one.
I don't know what exact technique Apple uses besides scheduling product releases outside of major holiday rushes, but they could prepay for freight capacity and enable that requirement when the product is actually ready. As it is now, they are effectively paying a "spot price". They have the liquidity to buy a futures or options contract.
Rocketman
Rocketman
that would be so crazy if they did that. The stores wouldn't even have time to get ready for it!
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I would think that the ipad2 would roughly displace ipad3 shipments? With the exception of the early rush...
monaarts said:
I would think that the ipad2 would roughly displace ipad3 shipments? With the exception of the early rush...
That was never the case. Ramping up production to meet a specific announcement date, often set a couple of months in advance has always been tough. Release date could be anywhere from same day to weeks down the road. I think what we're seeing is phenomenal interest in a transformational product. One that constitutes 20% of the world's largest company's sales.
It has nothing to do with Steve or Tim and everything to do with production realities. Had it not been for the Chinese New Year, iPad 3 might have been available a couple of weeks earlier.
The smaller and more expensive the product, the more likely it is to go on a plane. Shipping electronics on a boat isn't that great of an idea anyway. The salty air can lead to corrosion pretty quickly and that's why you see the little silicone crystal packets in cheap electronics but rarely if ever in high end electronics.
Oh sure! Hold deliveries to everyone until they have millions stockpiled. NOT! I want it ASAP.
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500M? Holy crap man, be reasonable. I would be surprised if they had 10M ready to ship, given they have likely only been assembling for the past two months getting up to speed for the new assembly. Even 5M is a huge number to launch with!
gillybean said:
500M? Holy crap man, be reasonable. I would be surprised if they had 10M ready to ship, given they have likely only been assembling for the past two months getting up to speed for the new assembly. Even 5M is a huge number to launch with!