iPhone 11 Pro How much money is Apple losing by not having stock available?

[tonybarnaby]

I checked TMobile for instance, and they say the new pros will ship between the end of October to the first week of November. You have to figure most people who were dead set on a new iPhone pre-ordered it.

Apple is really going hard right now with iPhone commercials and ads. Surely there are a bunch of people who see the ad and decide to go check out the phone. They arrive at the store and are told the wait could be up to a month. I'd assume a good number of people in that position will not wait that long, especially those who need a new phone now.

I know it's hard to supply the entire world with the most popular phone there is, but I can't help but wonder how many potential customers are being sold an Android phone instead (at a carrier store). The note 10+ can be sold by a salesman as nearly as nice as the new pro.

I don't claim to be an expert at the logistics involved, but it's still unfortunate that so many people who are willing to pay $1200 for a phone are unable to acquire one. It's always been like this, so I'm sure there is no solution to be able to have 100 million phones ready at launch. I am curious how many people go in on a whim and are willing to order a phone and wait 2-4 weeks for it.

 

[doboy]

People who want it will wait for it per usual. It’s been like this for over a decade.

 

[revmacian]

You have to remember that there are some folks, like me, who consider iPhones to be the only phones available. Yes, yes, I know Android phones exist, but you couldn’t pay me to use an Android device. When I need a new phone I’ll wait for the new iPhone to become available. My only other choices are to continue using my current iPhone or make do without a mobile phone.

 

[Azathoth123]

Considering Google’s business model, they’d have to give me the flagship and pay me to use it.... quite a lot.

 

[JPack]

I doubt sales will be negatively impacted much. How many people need to have a phone today? Unless their current phone is completely unusable, people are willing to wait. It also assumes people are unwilling to go iPhone 11 or vice versa.

Last year, Apple overestimated demand for iPhone and this year, they're much more conservative with inventory.

 

[tonybarnaby]

People who want it will wait for it per usual. It’s been like this over a decade.

I'm still new to iPhones. I just assumed the days of waiting in a line 2 blocks long was over with. The T-Mobile store my buddy manages has not had ANY stock delivered since their initial stock for launch. I don't see how this is possible. I'm not in logistics, but I figure they could ship a few thousand phones in each color to each store because they know they won't end up sitting on them long. How can a large carrier store be cut off immediately after launch? There has to be a way to keep the inventory moving in.

 

[rainafterthesun]

I'm still new to iPhones. I just assumed the days of waiting in a line 2 blocks long was over with. The T-Mobile store my buddy manages has not had ANY stock delivered since their initial stock for launch. I don't see how this is possible. I'm not in logistics, but I figure they could ship a few thousand phones in each color to each store because they know they won't end up sitting on them long. How can a large carrier store be cut off immediately after launch? There has to be a way to keep the inventory moving in.

They do, it’s just more priority at the apple store.

 

[tonybarnaby]

They do, it’s just more priority at the apple store.

Seems asinine that the most successful company in the world couldn't have enough to go around. Not getting even a single phone since launch is not good business. How are people supposed to sell the new pro, only to then tell the customer "we will call you in a month when your phone is available." I'm glad I'm not selling them, that's for sure.

 

[rainafterthesun]

Seems asinine that the most successful company in the world couldn't have enough to go around. Not getting even a single phone since launch is not good business. How are people supposed to sell the new pro, only to then tell the customer "we will call you in a month when your phone is available." I'm glad I'm not selling them, that's for sure.

There’s a reason they’re so successful.

I’m with TMobile and I didn’t have to preorder or wait. Got my phone a few days after launch, ordered and picked up same day.

 

[Packers1958]

Maybe switch to verizon. They have plenty available that will ship the next 1 to 2 weeks, depending on model and size.

 

[tonybarnaby]

Maybe switch to verizon. They have plenty available that will ship the next 1 to 2 weeks, depending on model and size.

I'm not looking to buy one, I am just surprised how hard it is. I heard some people complaining about it so I looked into it.
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There’s a reason they’re so successful.

I’m with TMobile and I didn’t have to preorder or wait. Got my phone a few days after launch, ordered and picked up same day.

I was able to get my X and Xs Max on launch at TMobile without preordering also. This year is different.

 

[JPack]

Seems asinine that the most successful company in the world couldn't have enough to go around. Not getting even a single phone since launch is not good business. How are people supposed to sell the new pro, only to then tell the customer "we will call you in a month when your phone is available." I'm glad I'm not selling them, that's for sure.

Apple inventory allocations are prioritized based on willingness to wait.

For example, in the U.S., inventory is limited as Apple holds dominant marketshare. Customers and carriers are willing to wait.

In China, most configurations of iPhone 11 Pro Max are available for same day delivery from Suning, the equivalent of Best Buy, but about 10x bigger. Competition from Android is a much bigger concern.

 

[Packers1958]

I'm not looking to buy one, I am just surprised how hard it is. I heard some people complaining about it so I looked into it.
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I was able to get my X and Xs Max on launch at TMobile without preordering also. This year is different.

T-Mobile is a smaller carrier compared to AT&T and Verizon. Verizon worth $201 billion. AT&T $178 Billion. T-Mobile $24 billion. Who do you think is going to get the greatest supply of iPhones? It's not T-Mobile.

 

[TheAppleFairy]

Seems asinine that the most successful company in the world couldn't have enough to go around. Not getting even a single phone since launch is not good business. How are people supposed to sell the new pro, only to then tell the customer "we will call you in a month when your phone is available." I'm glad I'm not selling them, that's for sure.

What a simple comment.

Apple shipped over 36 million iphones in the first quarter of 2019 worldwide. Now I am not sure when the iphone 11 design was finalized and went into full production, but try to put that into perspective on how many phones Apple sells per month and what it takes to create and ship that many phones, and they will have to do it all again in 11 months.

 

[JPack]

What a simple comment.

Apple shipped over 36 million iphones in the first quarter of 2019 worldwide. Now I am not sure when the iphone 11 design was finalized and went into full production, but try to put that into perspective on how many phones Apple sells per month and what it takes to create and ship that many phones, and they will have to do it all again in 11 months.

Foxconn has a capacity of about 500,000 units per day. Mine was built on 8/30/2019 so Apple has enough time to stock most shelves with product. But Apple doesn't need to do that. Many customers are willing to wait. Because for most people, they're simply upgrading rather than buying their first smartphone.

 

[TheAppleFairy]

Foxconn has a capacity of about 500,000 units per day. Mine was built on 8/30/2019 so Apple has enough time to stock most shelves with product. But Apple doesn't need to do that. Many customers are willing to wait. Because for most people, they're simply upgrading rather than buying their first smartphone.

That's a mind blowing number. I assumed the capacity was pretty high but interesting regardless.
There are ways to get it early if you can't wait, but I agree you are right. There are many reasons people wait and most don't mind waiting. I know many people who have the 6S still and are happy with it.

 

[Packers1958]

That's a mind blowing number. I assumed the capacity was pretty high but interesting regardless.
There are ways to get it early if you can't wait, but I agree you are right. There are many reasons people wait and most don't mind waiting. I know many people who have the 6S still and are happy with it.

People might not want to wait a whole lot longer. The 15% tariffs take effect in December.

 

[TheAppleFairy]

People might not want to wait a whole lot longer. The 15% tariffs take effect in December.

We still don't know what Apple plans to do with that yet do we? I wonder if they will bump their prices or cut their margins.

 

[Packers1958]

We still don't know what Apple plans to do with that yet do we? I wonder if they will bump their prices or cut their margins.

30% tariffs will hit the Macs, AirPods and Watch. There is only so much Apple can absorb before passing it on to the consumers.

 

[JPack]

That's a mind blowing number. I assumed the capacity was pretty high but interesting regardless.
There are ways to get it early if you can't wait, but I agree you are right. There are many reasons people wait and most don't mind waiting. I know many people who have the 6S still and are happy with it.

Yes, it's an incredible operation. Last year, Apple sold 217 million iPhones, so that's an average of 600,000 units per day. Demand likely varies from 300,000/day to 900,000/day depending on the period.

 

[choreo]

My iPhone 11 Pro ordered from Apple's website online is scheduled to ship the end of this month.

Best Buy here has them on display and said they could get me what I wanted in 4 days? In my case, I am very patient and ordered through Apple to get the 3% cash back on my Apple Card.

I imagine Apple will lose about as many sales as they did by not stocking/releasing them a month "before" the announcement and about twice as many by not stocking/releasing them two months in advance? (i.e. - not many)

Not sure why people stand in line for a "phone" that still drops calls? Not sure why they even call them "phones" - that appears to be a secondary function - I rarely see anyone trying to talk on one?

 

[Packers1958]

My iPhone 11 Pro ordered from Apple's website online is scheduled to ship the end of this month.

Best Buy here has them on display and said they could get me what I wanted in 4 days? In my case, I am very patient and ordered through Apple to get the 3% cash back on my Apple Card.

I imagine Apple will lose about as many sales as they did by not stocking/releasing them a month "before" the announcement and about twice as many by not stocking/releasing them two months in advance? (i.e. - not many)

Not sure why people stand in line for a "phone" that still drops calls? Not sure why they even call them "phones" - that appears to be a secondary function - I rarely see anyone trying to talk on one?

You can use Apple pay at BB, so you should still be able to get back 3% when using the Card via your iPhone.

 

[choreo]

You can use Apple pay at BB, so you should still be able to get back 3% when using the Card via your iPhone.

Did not know that!

 

[JCCL]

In my case not having stock actually cost them a sale. Made me think better my purchase and decided I’ll stick with XS MAX for another year. If they had stock when I wanted most likely I would’ve pulled he the trigger.

 

[Clix Pix]

Go to an Apple store, don't waste time going to a carrier store.... I checked this morning on Apple's website and saw that they had just what I wanted available for pickup today. Drove over to the store, made a reservation (which is still the system for the time being) and a couple of hours later after browsing around the mall returned to the Apple store to wait very briefly in line and then was able to get my new iPhone 11 Pro Midnight Green plus Forest Green case and AppleCare. I did a trade-in of my iPhone X and paid for everything. Done. . I got the new iPhone set up before leaving the store. Smooth and easy..... This was the earliest I've ever been able to get a new iPhone after Launch Day -- in the past it has been in November or late October. Really a surprise this time!