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iPads in Short Supply as Online Orders Pushed to 3-4 Weeks
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One problem with the "fake demand" theories is that if you turn customers away, there's quite a risk that they get something else instead. There's some PR benefit to the hype factor, but there's a more tangible benefit to selling as many units as possible. The most logical explanation is simply that they're making them as fast as they can, and that for whatever reason there's just a lot of demand, perhaps more than expected. That's all.
--Eric
--Eric
Preordes and reservations would not help sell more products within a given time period. The sales numbers are constrained only be the delivery chain, not by the efficiency at the selling points.
Now if they had problems selling because they just couldn't get enough people through the doors, that's another matter. That was a matter with iPhone, where each customer had to spend a while in the store until they get set up with the service. iPad has no such problems, so no programs that help only at the point of sale are necessary. Especially since they would still depend on the supply chain, so what good is getting a pre-order or a reservation when there is no guarantee that the chain will deliver on schedule once that orders and reservations start pouring in.
Value? The media attention that comes from a 'sell out' product. If someone lined up and waited, I'm sure Apple assumes they will come back at some point.
What I think clinches this as a planned event is how they changed their policy of pre-order reservation and at-home delivery, to encourage people to wait in line to get the item first. If Apple followed the SAME sales pattern as before, I don't know if I would be so suspicious of supply manipulation. However, they got a black eye at no lines for Verizon iPhones and I think did this as to no repeat that unpleasantness again.
I don't think that Apple created a deliberate shortage. Nor do I think that Apple was really interested in creating "line hype." (And if they were, they failed; although there were 2,000+ people in line at the Apple store by me, there were no TV cameras covering it, nor was there any mention of the line in the paper or on the news). There may not be that much interest in running a story every couple of months about people again waiting in line for another Apple product.
The demographics of the line were a little different, too - the iPhone 4 line had a good mix of ages, with maybe 50% of the people in line being 25 or younger (although that cohort is still only a quarter of the iPhone demographic). The iPad 2 line was about 85-90% people under 25, with a much smaller proportion of oldsters. I suspect that this has to do with the fact that most of the people in the iPhone line had reservations...but I don't really know.
Really, I think that Apple simply messed up and significantly underestimated the demand for the 2; treating this more like the release of a new iPod Touch than of an iPhone. I *don't* think that Apple wants to turn away customers; nor do I think Apple wants to make it more difficult for people over 30, with job and family responsibilities, but also with more discretionary income, to purchase their products. I think that they genuinely didn't get how popular it would be, and so didn't set up a reservation system, pre-order system, or deeper online inventory.
And, really, the best way for Apple to ramp up the hype would be to have had a reservation system; a lot more people would stand in line if they were guaranteed to get the product they want at the end of the wait...and Apple gets to talk about how they sold as many iPad 2s in the first weekend as they sold in the first month of iPad 1s.
The demographics of the line were a little different, too - the iPhone 4 line had a good mix of ages, with maybe 50% of the people in line being 25 or younger (although that cohort is still only a quarter of the iPhone demographic). The iPad 2 line was about 85-90% people under 25, with a much smaller proportion of oldsters. I suspect that this has to do with the fact that most of the people in the iPhone line had reservations...but I don't really know.
Really, I think that Apple simply messed up and significantly underestimated the demand for the 2; treating this more like the release of a new iPod Touch than of an iPhone. I *don't* think that Apple wants to turn away customers; nor do I think Apple wants to make it more difficult for people over 30, with job and family responsibilities, but also with more discretionary income, to purchase their products. I think that they genuinely didn't get how popular it would be, and so didn't set up a reservation system, pre-order system, or deeper online inventory.
And, really, the best way for Apple to ramp up the hype would be to have had a reservation system; a lot more people would stand in line if they were guaranteed to get the product they want at the end of the wait...and Apple gets to talk about how they sold as many iPad 2s in the first weekend as they sold in the first month of iPad 1s.
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I waited in line at the apple store at the keystone mall in Indy only to have them sell out in front of me. All other retailers were also sold out. The local apple phone line was busy almost all day, but when I did finally get a hold of someone, he said he couldn't tell me when they would get another shipment in, but adamantly kept telling me to "check again on Tuesday morning".
Hopefully they will get regular restocks in.
As far as all this conspiracy talk of constricting supply to build hype, I say BS. They are making and shipping as quickly as humanly (chinesely) possible. The yellow spots from the adhesive not drying yet is a testament to that.
The iPad was the most successful new product launch OF ALL TIME. Ofcourse there are goIng to be strains on production and shipment of the iPad 2. I myself am someone who desperately wanted the first iPad but patiently waited for the secod version to come out so they could iron out all the wrinkles (and add cameras!)
I just can't wait until the next shipment comes in.
I waited in line at the apple store at the keystone mall in Indy only to have them sell out in front of me. All other retailers were also sold out. The local apple phone line was busy almost all day, but when I did finally get a hold of someone, he said he couldn't tell me when they would get another shipment in, but adamantly kept telling me to "check again on Tuesday morning".
Hopefully they will get regular restocks in.
As far as all this conspiracy talk of constricting supply to build hype, I say BS. They are making and shipping as quickly as humanly (chinesely) possible. The yellow spots from the adhesive not drying yet is a testament to that.
The iPad was the most successful new product launch OF ALL TIME. Ofcourse there are goIng to be strains on production and shipment of the iPad 2. I myself am someone who desperately wanted the first iPad but patiently waited for the secod version to come out so they could iron out all the wrinkles (and add cameras!)
I just can't wait until the next shipment comes in.
Do you even hear yourself? Someone above complained that Rhode Island got only 2,000 iPads. Rhode Island has 1 million people. That's 1 iPad for every 500 people. On national level, that would equal 600,000.
So what you are basically saying is that if you sell at national rate level 600,000 items on day 1, the reason you are making news is NOT because your sells are great, but because they artificially KEPT LOW!
You seem to be suspicions because Apple is not selling a million iPads a day!
If you wanted one quicker, it really wasn't hard...
First off, people who complained there wasn't a pre-order. Apple couldn't offer a pre-order because of too many 3rd party retailers (Wal-mart, Best Buy, Target, et al). You can't undercut your retailers because they won't continue to carry your product. Pre-orders take sales from them. Must share the love to maintain the huge distribution chain.
If you really wanted the shortest online wait time, you should have woken up early and pre-ordered, 3-5 days. If fact, it went to 5-7 days around 7 AM EST. 2-3 weeks and around 9AM EST. I set the alarm and ordered mine @ 4AM EST and then went back to sleep.
I then decided to try my local Target @ 5PM Friday. Here I lucked out. They got at least 30 that I could see. I did get a White 32Gb Verizon 3G. Yeah I kinda wanted the AT&T 3G but that really wasn't a huge sacrifice. I canceled my pre-order while I was in line to be rung up. 15 minutes for the whole experience. They did have to call security because someone was trying to but in line, though.
In fact, this same Target had 2 left at 11AM today. But, of course they were the most expensive black model.
First off, people who complained there wasn't a pre-order. Apple couldn't offer a pre-order because of too many 3rd party retailers (Wal-mart, Best Buy, Target, et al). You can't undercut your retailers because they won't continue to carry your product. Pre-orders take sales from them. Must share the love to maintain the huge distribution chain.
If you really wanted the shortest online wait time, you should have woken up early and pre-ordered, 3-5 days. If fact, it went to 5-7 days around 7 AM EST. 2-3 weeks and around 9AM EST. I set the alarm and ordered mine @ 4AM EST and then went back to sleep.
I then decided to try my local Target @ 5PM Friday. Here I lucked out. They got at least 30 that I could see. I did get a White 32Gb Verizon 3G. Yeah I kinda wanted the AT&T 3G but that really wasn't a huge sacrifice. I canceled my pre-order while I was in line to be rung up. 15 minutes for the whole experience. They did have to call security because someone was trying to but in line, though.
In fact, this same Target had 2 left at 11AM today. But, of course they were the most expensive black model.
What I've learn with my iPad 1 this past year:
1) If you got free Tethering (jailbreak or android rooted phone)
------> you don't need 3G
2) If you really don't use your iPad for storing important data because is so important that you make backups to your main computer weekly...
------> you don't need more than 16 gigs
3) If you realized that the idevices didn't keep their value as Macs do to re-sell them online (ahem* eBay ahem*)
------> You don't need to spend a lot.
Conclusion:
First iPad: 64gig + 3G + WiFi + Happiness
iPad 2 on debut day: 16Gig + WiFi + Reality (Black of course)
1) If you got free Tethering (jailbreak or android rooted phone)
------> you don't need 3G
2) If you really don't use your iPad for storing important data because is so important that you make backups to your main computer weekly...
------> you don't need more than 16 gigs
3) If you realized that the idevices didn't keep their value as Macs do to re-sell them online (ahem* eBay ahem*)
------> You don't need to spend a lot.
Conclusion:
First iPad: 64gig + 3G + WiFi + Happiness
iPad 2 on debut day: 16Gig + WiFi + Reality (Black of course)
Ok lets compare this to Samsung. Samsung shipped 2 million units and it took weeks to the number of sales the ipad has in one day on a release. Now you can say the ipad doesn't really sell those numbers but then Apple orders more units from suppliers. On the other hand people like to change the topic to Steve Job's "misquote" of the Samsung CEO but the true issue, sales, remains. Has Samsung ordered more units to replace the first 2 million from last fall?
Basically your argument makes no sense. Apple imply sells in larger volumes than other tablet makers. Furthermore if what you say is true then why didn't we see these lines at the Verizon iphone launch? Explain that.
You clinched nothing. Face it.
Now go do something useful today rather than wasting time telling silly stories on a forum.
But admit you are wrong first and save face.
True. But it does "force" people to go to the retail stores thus increasing the lines. It is an act of dominance, show the competition they've got nothing. But to do this they're using their customers. Now this is what I don't like.
And since they decided to focus on retail, why no purchase limit? Why let resellers snatch a handful of iPads and have many people leave empty handed? That shows poor planning IMO.
I don't believe they restricted supply for release day, they are making them as fast as they can, no doubt. It's the distribution tactics that I'm questioning.
Yes, because we all know that Apple arranged for an infinite number of them to be available on day one, and are just holding back to feed Full of Win's conspiracy theories.
lines again today
I went to the mall again today and there was a line of 100+ people at the Apple store again today. I couldn't believe it. They had to of run out last night, they were very low at 6:30 when I finally got mine and there was still about 200 still in line then. I wonder if they got another shipment in last night?
I went to the mall again today and there was a line of 100+ people at the Apple store again today. I couldn't believe it. They had to of run out last night, they were very low at 6:30 when I finally got mine and there was still about 200 still in line then. I wonder if they got another shipment in last night?
Wow for some one who despises Apple so much, boy do you haunt these threads.
Did you camp out to be number one to post?
I'm suspicious that Apple took actions different from the last three big launches, that forced line waits, rather then to make them optional. If Apple did the same pre-order and home delivery options they did for the iPad 1, the AT&T iPhone and Verizon iPhone 4, I would not be so suspicious.
It seems like they are doing actions, limiting sales options and reduce initial supply, to generate an increased frenzy.
Do I have absolute proof of this? No. I'm just look at their change in sales that made waiting in line the ONLY way to get one on launch day as well as media accounts concerning the lack of lines at the last big launch , as hints to their true intent.
You tin foil hat types do understand, don't you, that no company designs production runs based on initial surge, right?
To do so would mean overproduction soon after. You forecast based on average expected demand with a little fudge room one way or the other.
But armchair CEO's are happier in their fantasies of how large companies work.
To do so would mean overproduction soon after. You forecast based on average expected demand with a little fudge room one way or the other.
But armchair CEO's are happier in their fantasies of how large companies work.
There are some seriously misguided comments on this thread.
Apple is a for-profit company. They are obligated to make money for their investors. No company in the world wants to leave money on the table including Apple.
They just can't produce them fast enough. Too much lead time and the Rumor mill has the device pegged and China putting them out before it even launches. Rush it and the its becomes vapor ware because you've heard their on sale, but nowhere to be found.
Either way...
I was at the Roosevelt Field mall here in Long Island, at 2PM I asked if they had any left. The salesperson said they got a big shipment in the morning and all that was left was the 16GB Wi-Fi version in black. Less than 30 minutes later, I overheard them saying they just sold out.
I think this store is probably one of your best shots at picking one up if your in the area. It took them quite a while to run out of iPhone 4's when they first came out, and they are continuously getting stock.
I'm pretty surprised these things are selling as fast as they are. I held a new white iPad2 and can't believe how thin they are. I was a little nervous about it slipping out of my hand. I actually liked the white. I thought it would be too distracting, but it wasn't that bad.
My son was really craving one. It was pretty tough to walk away after seeing it in person. This is seriously one device I don't need (iphone 4, iMac, Macbook Air, Mac Mini), but I would love to have it for a reader.
Thank god I was broke at the moment, or I would have brought it home with me.
Apple is a for-profit company. They are obligated to make money for their investors. No company in the world wants to leave money on the table including Apple.
They just can't produce them fast enough. Too much lead time and the Rumor mill has the device pegged and China putting them out before it even launches. Rush it and the its becomes vapor ware because you've heard their on sale, but nowhere to be found.
Either way...
I was at the Roosevelt Field mall here in Long Island, at 2PM I asked if they had any left. The salesperson said they got a big shipment in the morning and all that was left was the 16GB Wi-Fi version in black. Less than 30 minutes later, I overheard them saying they just sold out.
I think this store is probably one of your best shots at picking one up if your in the area. It took them quite a while to run out of iPhone 4's when they first came out, and they are continuously getting stock.
I'm pretty surprised these things are selling as fast as they are. I held a new white iPad2 and can't believe how thin they are. I was a little nervous about it slipping out of my hand. I actually liked the white. I thought it would be too distracting, but it wasn't that bad.
My son was really craving one. It was pretty tough to walk away after seeing it in person. This is seriously one device I don't need (iphone 4, iMac, Macbook Air, Mac Mini), but I would love to have it for a reader.
Thank god I was broke at the moment, or I would have brought it home with me.
There was a 2 per person limit.
I ordered mine online, and got 3-5 day shipping.
Although I don't have it in my hands immediately, I'm more than fine waiting for it to show up this week without any frustration.
Black 16 Wifi + Green Smart Cover
Apple is as sinister as you believe
Apple benefits greatly from lack of a product. Remember all the good press from there being no white iPhones on the iPhone 4 launch? Or the secondary queue of people at the Apple Stores on Friday waiting for the white iPhone launch? It's in Apple's best interest when there is no product to sell. Sure some might say manufacturing 6 different configurations for 2 different providers to sell to at least 5 different retail stores (and that's just in the US) plus online orders and the people who waited out the original iPad along with those upgrading their iPads may contribute to an actual shortage of product. But you and I know, they're in on it. It's all part of Apple's master plan.
Next they'll announce the iPhone 5 in June but not put it up for sale until Black Friday. Current 4th quarter projections are already through the roof.
Apple benefits greatly from lack of a product. Remember all the good press from there being no white iPhones on the iPhone 4 launch? Or the secondary queue of people at the Apple Stores on Friday waiting for the white iPhone launch? It's in Apple's best interest when there is no product to sell. Sure some might say manufacturing 6 different configurations for 2 different providers to sell to at least 5 different retail stores (and that's just in the US) plus online orders and the people who waited out the original iPad along with those upgrading their iPads may contribute to an actual shortage of product. But you and I know, they're in on it. It's all part of Apple's master plan.
Next they'll announce the iPhone 5 in June but not put it up for sale until Black Friday. Current 4th quarter projections are already through the roof.
It's very conceivable, and more plausible, that Apple simply couldn't get the production lines ramped up enough to support pre-orders. Switching from full production on one product to full production on its replacement, while at the same time trying to prevent leaks, is not a simple task. Don't forget that the Verizon iPhone is in production alongside the AT&T model and it's not all that different. That launch is totally different from the iPad launch.
My theory is that Apple knew there would be big lines and felt it would be more fair to dedicate as many of their limited units as possible to retail channels in order to satisfy those customers who were willing to stand in line for hours. The last thing they would want is for 75% of launch day inventory to be in pre-orders, as that would leave a horrible taste in the mouths of people who stood in line.
It costs them $27 more to manufacture a 3G iPad. They can make it $130 more and people would still buy it, so they do.
Source: iSuppli
That's not entirely true, they'd have to machine the body completely different and shift around the internal components.
There are costs associated to this, although not directly apparent.
My local Best Buy started taking rain checks for the next shipment, with a $100 deposit required. They didn't know when it will come in, but they said it wouldn't be weeks or months. At least now I don't have to keep checking in to see if they have any.