Apple's iPad Tops Worldwide Tablet Market in 2Q11 with 68% of Shipments

[BaldiMac]

As pointed out above in their SEC filing, Apple counts anything already delivered or shipped, as "sold".

Yep.

Probably in China warehouses, since that's where Apple usually ships stock from.

That seems ridiculous.

(If that's true, channel inventory isn't even counted in the "sold" numbers that Apple reports.)

As Apple says, they like to keep 4-6 weeks' worth of channel inventory available in case of factory problems or anticipated demand such as with Christmas coming up.

You seem to be thinking about retail store inventory, instead.

Even then, having something in stock doesn't automatically mean it has also been sold to an end user. For example, ATT might buy up millions in anticipation of a sale that hasn't taken place yet.

Actual sales numbers are hard to get and often rely on exit polls and store manager interviews.

PS. The only time that the "end customer" is not a dealer or store, is when Apple itself is the direct seller, as when you buy an iPad from their online store and the item is shipped directly to you from their channel inventory, with no middle dealers involved.

Again, where are you getting your definition?

End Customer
http://www.google.com/search?client..._gc.r_pw.&fp=3aa46e01b7a3bff&biw=1250&bih=882

 

[JAT]

Best Buy (I just keep using them as an example since they are recognizable) is Apple's end customer in a typical distribution chain. Yes, I personally might be the end customer* in Apple's vertically integrated chain that ends at the Apple store 2 miles from here. But when discussing BB, it is different.

BB does not need to tell Apple (or Sony, Panasonic, Whirlpool, etc) how many they have sold, and probably doesn't. Apple likely does not receive individual user sales data from any of its retail partners. "Sales" through such a chain are to the retailer, not to you and me.

I, and kdarling, might be incorrect in this case, Apple does do things differently than other companies. And god only knows what analysts or the media are talking about. However, this is the traditional retail distribution method and definitions. I get this from my schooling that gave me a BS in BA, and from experience as an accountant, 7 years in manufacturing. (those who count the beans are the ones who actually know how many there are)

* Actually, in some companies, it may still be the same. I don't know if Apple counts this way, but many will separate retail centers from manufacturing and distribution, using different corporate entities. Then sales for the manufacturing side still do not necessarily mean an individual person has purchased a unit, but again refer to those transferred to the retail division, just the same as if they were shipped to an unrelated retailer. I'm sure that Sony's IC company counts sensors as sold before they are actually inserted into a Sony digicam, for instance. Because they don't want those units counted separately from the units sold to Nikon, so they are all "sold" when shipped.

 

[BaldiMac]

Best Buy (I just keep using them as an example since they are recognizable) is Apple's end customer in a typical distribution chain. Yes, I personally might be the end customer* in Apple's vertically integrated chain that ends at the Apple store 2 miles from here. But when discussing BB, it is different.

BB does not need to tell Apple (or Sony, Panasonic, Whirlpool, etc) how many they have sold, and probably doesn't. Apple likely does not receive individual user sales data from any of its retail partners. "Sales" through such a chain are to the retailer, not to you and me.

I, and kdarling, might be incorrect in this case, Apple does do things differently than other companies. And god only knows what analysts or the media are talking about. However, this is the traditional retail distribution method and definitions. I get this from my schooling that gave me a BS in BA, and from experience as an accountant, 7 years in manufacturing. (those who count the beans are the ones who actually know how many there are)

* Actually, in some companies, it may still be the same. I don't know if Apple counts this way, but many will separate retail centers from manufacturing and distribution, using different corporate entities. Then sales for the manufacturing side still do not necessarily mean an individual person has purchased a unit, but again refer to those transferred to the retail division, just the same as if they were shipped to an unrelated retailer. I'm sure that Sony's IC company counts sensors as sold before they are actually inserted into a Sony digicam, for instance. Because they don't want those units counted separately from the units sold to Nikon, so they are all "sold" when shipped.

I just find it hard to believe that at the end of a quarter where Apple is claiming supply shortages of iPads, that they have 1 million iPads sitting in a warehouse in China waiting to be shipped. It doesn't make any sense.