Yeah, the excitement is all just because of the marketing hype.
That and actually being able to ship a product.
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iPads in Short Supply as Online Orders Pushed to 3-4 Weeks
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Yeah, the excitement is all just because of the marketing hype.
That and actually being able to ship a product.
According to iSuppli, the manufacturing process costs $1.20 more for a 3G model than a wifi one. Guess it was closer to $28, oops.
Thanks Caleb, too.
That's roughly half a gross (72) per pallet, and most locations got a pallet or less today and more tomorrow or the next day.
That will teach you early adopters to order online!
P.S.
Oh, please shut up "full of win" (hot air).
Someone had to say it politely.
Rocketman
That's roughly half a gross (72) per pallet, and most locations got a pallet or less today and more tomorrow or the next day.
That will teach you early adopters to order online!
P.S.
Oh, please shut up "full of win" (hot air).
Someone had to say it politely.
Rocketman
According to iSuppli, the manufacturing process costs $1.20 more for a 3G model than a wifi one. Guess it was closer to $28, oops.
To be fair to Apple, there are licensing cost to be factored into the CDMA/GSM models as well that are not shown on a BOM.
Even at that, we're still talking no more than a few dollars. Nothing to warrant a $130 price increase.
I don't think so.
The "false scarcity" remark was in reference to limiting supply so that the price (and therefore profit) can be increased. Not sure how old you are, but back when the Mazda Miata was first introduced, there was a limited supply and some dealerships were selling them for $50k. Retail price was $14k.
My thoughts regarding the lack of a pre-order option refers to the lack of lines at the Verizon iPhone launch. My thought is that Apple wanted to ensure that there'd be lines so they'd get some free PR. nothing to do with limiting the supply, just redistributing where iPads are being bought.
Does Apple have a lot these to make? Sure.
Can I prove I'm right ? No
Apple has everything to gain to make the perception that this is a scarce device, as seen by long lines and rumors of long term limited availability. We know that Apple changed their policy from the last three launches (iPad 1, and both iPhones 4's) such that it made waiting in line the ONLY option to get one on launch day. The effect of this was obvious - to make longer lines. We also know that Apple got a few media digs for the short Verizon iPhone 4 lines.
The dots, as I see them connected, is that Apple wants to build the hype around the device. One part of this, is to have the stories of long-term limited supplies.
Apple want to make money - I get it. However, its troubling to me they are willing to exchange the customer experience to do so. Getting my iPad 1 and iPhone 4 was butter smooth, I waited for the pre-order, reserved the SKU I wanted, and then had it delivered the same day it went on sale at Apple Stores.
buy the wifi version then. what's the problem?
do you mean it's a problem that apple is providing more than $130 worth of utility to the consumer while spending less?
No, I was simply telling someone that the price costs them around $28 to make a 3G model over a wifi model.
I'd probably end up buying a 3G model myself, just not at retail price, or anywhere near it for that matter.
isuppli posts are the dumbest ever! They have no real knowledge of the REAL prices Apples contracts for all its components.
And there are always some dumbos that take isuppli info as gospel.
Finally someone posting who has some understanding of economics and production. Things to consider:
1. in order to meet launch day demmands that are much higher, on average, than subsequent demands: you would have to ramp up production which causes excess wear and tear on your capital, which may ultimately lead to being able to produce fewer iPads overall with the same machinery and workers.
2.In amassing the product you have to store it, paying for wearhouses, security, etc.
Is apple supposed to deminish its profit to meet demand for a product? They have no duty to do so.
3. Weeks ago there were rumors of delay in the production of the new iPad. Perhaps this affected the amount of product on launch day as well.
4. Hype machine? Lots of people really like the iPad experience that's not hype. Does anyone really watch the news and think "Wow, thousands of people are lining up to buy a >$500 product. I have no idea what it is but I want one because everyone else wants one." There may be a few wealthy idiots out there who fit this description but it's not 99.99% of the people in those lines.
Why should we blame apple for anything? They make a very nice product. Lots of people want it. Lots of people want to spend their time waiting for the product. It can't, by definition, be wasting their time if they're choosing to spend it that way. Does it stink that some people might feel like they wasted their time by waiting in line for a product they end up not getting- yes! But when did Apple promise that everyone who shows up will get the iPad they want? That being said it would be in individual stores' best interest to announce how many and what types of ipad they have (or hand out vouchers until none are available) so that people can know whether or not they should wait.
5. Apple really can't suffer, at this point, for not immediately meeting demmand. If another company had a product for sale that was as compelling as the iPad2 in this category Apple might lose sales to that company. As it stands there is no competitor. I don't see many people saying "well, I didn't get the iPad 2 on opening day so look out xoom here I come." That's not happening.
Can anyone think of a non-apple product that generated this much demmand but had a better launch?
If memory serves the sliced bread rollout had its naysayers.
That's my Apple store. When I saw the line, I decided not to risk it because I was afraid that they would run out. I stopped by the Target at about 4, but they had only received 5 devices and five people were waiting for them. So I ordered online and got the the 2-3 week delivery time.
Temporary SXSW store in Austin had a ton of stock today...was headed downtown for a film premiere and decided to stop by to check it out. There was a line about a half block long, as they were letting customers in one at a time for iPads only. I picked up a 16GB black wifi, of which they had a whole stack. Was in and out in about 30 seconds, with a 5 minute wait in line.
You are thinking too simply here.
I'm guessing a portion of that $130 goes directly to Verizon/AT&T to allow for no activation fees EVER, unlike say with the Xoom where you have to pay an activation fee anytime you enable a 3G plan.
According to this iFixit iPad 2 teardown:
The A5 processor has manufacture dates of late January and mid-February 2011
That's 1 month between the time the processor was manufactured to the time the working device ended up on consumer hands. That doesn't sound like artificial shortage to me. It's pretty impressive actually.
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Read your other posts - oh why did I bother replying to a moron who just spouts nonsense with no supporting facts.
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I almost resorted to buying online, but by that time, they increased the shipping date to 3-4 weeks. I figure the apple store will have restocked way before then.
Been waiting a year for the pad, what's a few more days right?
I almost resorted to buying online, but by that time, they increased the shipping date to 3-4 weeks. I figure the apple store will have restocked way before then.
Been waiting a year for the pad, what's a few more days right?
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Lol. You're one of the lucky few. I went to walmart, they had none, then target, they were sold out, so I went to apple store to wait in line. They sold out shortly after.
Called every other retailer in the city. All sold out. That's what the fuss is about haha. No complaints from me though, I just can't wait to get my hands on one.
Les Kern said:
Lol. You're one of the lucky few. I went to walmart, they had none, then target, they were sold out, so I went to apple store to wait in line. They sold out shortly after.
Called every other retailer in the city. All sold out. That's what the fuss is about haha. No complaints from me though, I just can't wait to get my hands on one.
Based on the iFixit report and the reports last fall on the increase in production lines, there were probably 3-4 M at launch spread between 18 SKUs of which is sounds like the majority were 3G models.
The problem with this launch is the fact that it seems like they launched too soon with not enough stock in too many retail locations, sending customers on a wild goose chase. My local Walmart Super Center only received 13, Target 9 and AT&T Wireless 0. Also a friend stated that Target started selling them the minute the store opened yesterday morning.
All that does is make customers pissed off. Apple needs to have the inventory status pages that they had for the iPhone. Not to mention the fact that Apple needs to ensure that its retail policy is followed by its management.
If you don't think that Apple ultimately profits from the idea that their products are so popular that you need to stand line for several consecutive days or wait a month for mail order, I don't know what to tell you.
This is not "false scarcity"; it's "real scarcity" created by Apple, as part of Apple's overall marketing strategy. Probably conceived by that slimy looking VP of marketing in the video.
On the other hand, I guess one could believe that Apple professionals so greatly misread the market that their customers have to wait over a month for the product. I choose to believe Mr. Jobs and company are smarter than that.