iPhone Upgrade Program Causes Headaches on Launch Day Due to Limited Stock

[rwilliams]

What's with all the "first world problems" nonsense? It comes off as very pompous

This is not at all true in my case. Was able to get a preorder in at 8am pacific time this morning with absolutely no issues. For those who are saying they can't get the more popular models/colors, really? Of course you're going to have a hard time with that. Did you expect no one else to want it also?

Of course they knew that. As the article states, the issue is that if you are in the program, the availability was inexplicably limited to in-store stock instead of Apple's much larger stock of phones. What would have made more sense was to pull ALL pre-orders, program member or not, from the same inventory and then ship the phones to the store based on the number of orders. Instead, there was an "artificial" (for lack of a better term - hopefully you'll get what I mean) number of phones already designated for each store.

 

[leesweet]

My friend called today to ask if he could make an appointment for the iPhone Upgrade Program, it would be the first time he'd have enrolled in the program. They told him the earliest appointment would be October 25th. If he went in on that date and placed his order he probably wouldn't get a phone until December.

Was this the response from one store or Apple in general? One popular store may indeed be booked for 6 weeks already.

But I take your overall point. As I've said above, there is no reason this can't all be done online, and I thought new enrollees this year would do it that way. What a mess...

 

[gnipgnop]

I really hope Apple releases a statement regarding this issue.

They already have a statement.

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http://www.apple.com/shop/iphone/iphone-upgrade-program

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I don't see any guarantees in there about getting a new iPhone immediately at launch.

 

[JMPATLANTA]

This is precisely what AT&T does with Next, even ordering via apple.com. It works great.

Correct, and precisely why I have upgraded my iPhone with AT&T Next for the last two years. I logged into my account this morning at ~6:03am ET, AT&T had the iPhone 7 Silver 256GB in stock, I ordered and will have the phone in-hand on the 16th. In the box will be a return box with pre-paid label for me to pop my old 6s in and return. The only hassle is being unable to add AppleCare+ to it at the time of checkout but I can easily do that on the 16th with a quick call to Apple Store.

 

[varsityhero]

This was exactly my experience too. Spam-refreshing the site, as soon as it opened, there were no iPhone 7+'s available in anything but Rose Gold @ 256GB in any store in Colorado. Best I could do was to reserve matte black 256 GB iPhone 7, set up an appointment for 8 AM on launch day, and hope that they'll give me different inventory than what I reserved. Fingers crossed.

I can see the logistical nightmare of having to supply every local store with enough inventory, but at the same time iPhone Upgrade Plan users are getting hosed. Those customers that want a new iPhone every year (the entire point of the program) are obviously going to want them on launch day.

I'm doing the same thing pretty much. Reserved a Silver 7+ 256GB but really want matte black. Here's to hoping they can accommodate us with an 8AM reservation.

 

[Stratus Fear]

Not true they make less than demand to make it seem highly sought after. Smart marketing tool to have less than demand.

If this was even remotely true (it isn't) and I was an Apple shareholder, I would be calling for Tim Cook's head. You don't leave money on the table like that. No good money loving company deliberately under-produces for some sort of mythical hype. I mean, how do you think this would even work? Humans are fleeting. If there's no stock, sure, they'll think "wow this is popular" but then they can't buy the damn device because you can't find it anywhere. That's called a lost sale. They'll lose interest and maybe think about it again weeks or months later.

Every year some armchair economist who actually understands very little about business makes this assertion and every year it's patently untrue.

 

[Pbrutto]

Someone said "most loyal". No, just no. Anyone who buys an iPhone is allowed one as much as the next person. First come, first serve. Get over it.

I happen to agree with you, what you don't understand is we were not able to order at all...we did not miss a time and it slipped...we were not offered in store at all on some models while others were able to order for store pickup after many of us tried. I don't personally want preference, it should be first come first served always. Not being able to order from the first minute and then not being able to place an order at all is wrong.

 

[rbf1138]

I'm confused by this notion of having extra payments if you don't get the phone at launch...if next year at launch (my first time trying to upgrade in the IUP) I don't get a launch window reservation, how do I end up paying more? Isn't it still 24 payments total, regardless of which phone you possess?

 

[Pbrutto]

That would be me. I happen to agree with you, what you don't understand is we were not able to order at all...we did not miss a time and it slipped...we were not offered in store at all on some models while others were able to order for store pickup after many of us tried. I don't personally want preference, it should be first come first served always. Not being able to order from the first minute and then not being able to place an order at all is wrong.

 

[TrumpsWithUs]

I guess the problem with shipping to your home (if I understand you correctly) would be getting your current iPhone back from you.

Tmobile does this. They send you the new phone with a shipping label for you to send the old phone back. If you don't return the old phone you keep getting billed for it. It's not rocket science. This is another Angela SCREW UP! She has got to go. She screwed up the Apple Watch and now she is screwing up this.

 

[leesweet]

I'm confused by this notion of having extra payments if you don't get the phone at launch...if next year at launch (my first time trying to upgrade in the IUP) I don't get a launch window reservation, how do I end up paying more? Isn't it still 24 payments total, regardless of which phone you possess?

Extra as in more than 12. If you pay 24, that's it, you are done, you own it.

 

[shoorty0690]

I sat refreshing safari, and constantly reopening the Apple Store app from 2:55am EST - 3:10am and it gave me the "Come back soon" page, until it finally loaded and went to reserve at my local store and already the 256 Jet Black was sold out. It was like it wasn't even available from the get-go. Reminded me of trying to reserve a space gray watch...

Reserved the Silver under the upgrade program in hopes that within my return window, they'll get more Jet Black in-store to swap it out.

 

[Quu]

Was this the response from one store or Apple in general? One popular store may indeed be booked for 6 weeks already.

But I take your overall point. As I've said above, there is no reason this can't all be done online, and I thought new enrollees this year would do it that way. What a mess...

He called all the ones open where he can travel to within 4 hours. Some of them are closed for renovations which would further exasperate the problem.

 

[pcmacgamer]

Again, conspiracy theory - and a dumb one at that. The more they can sell, the more quickly, the less articles calling Apple doomed...the more money they make...the higher their stock climbs.

Not conspiracy and not a dumb one. Apple creates demand by producing less phones. Articles say phone is highly sought after which makes potential shareholders interested. This news can driving up stock price. Then earngings/sales number reports follow raising stock price. Even if earnings are slightly lower it doesn't matter because the good old hype machine that is Apple helped manufacturer a false sense of hype to potential shareholder.

 

[Surf Monkey]

Well, this is exactly what happened to me too. Got the store up the second it came back online and was restricted to two of the three Apple stores near me, both of which were out of stock on basically everything.

Apple touts the program as "the best way to buy iPhone." That's clearly incorrect. Not only was I locked out from pre-ordering from the very start, but I ended up having to re-enter my damn serial number over and over every time I tried to re-check.

I'm VERY unhappy about it.

 

[AllThingsApple007]

Apple should acknowledge and reward those in the Apple Upgrade Program with priority access or allocate specific stock to those enrolled in the program to be certain they can get the new products. That was the reason we were told we should want to be a part of it. I woke up at 4pm Eastern and tried to get a phone and everything was sold out. Poorly managed and executed by Apple. Not a nice thing to those who show dedication and loyalty. If they did give priority access and dedicated stock they would sell more into the upgrade program. Not well conceived or executed. Grade of F.

 

[leesweet]

He called all the ones open where he can travel to within 4 hours. Some of them are closed for renovations which would further exasperate the problem.

Yeah, I do see the issue. When I signed up, it took about 15 minutes. But that wasn't returning a phone, and wasn't 'having problems running credit checks'. It really needs to be electronic, online, and if you have a return phone, that is separate.

 

[Mr. Dee]

The best thing to do is send some nasty grams to Phill Schillers address.
[doublepost=1473446253][/doublepost]as Niley Patel would say so 'user hostile'.

 

[Stratus Fear]

Not conspiracy and not a dumb one. Apple creates demand by producing less phones. Articles say phone is highly sought after which makes potential shareholders interested. This news can driving up stock price. Then earngings/sales number reports follow raising stock price. Even if earnings are slightly lower it doesn't matter because the good old hype machine that is Apple helped manufacturer a false sense of hype to potential shareholder.

Supply and demand aren't linked like that. Demand isn't created by lack of supply, demand simply fails to be fulfilled if there is a lack of supply.

 

[Carmenia83]

Not sure why anyone would think that participating in the Upgrade Program would give them priority over other customers for new iPhones at launch. Doesn't say anything like that in the promo material for the program.

People aren't expecting priority, but an equal chance would be nice. Essentially, current customers only have access to what they will have in stock at their local store. Also factoring that they will have phones for walk in purchases on launch day, so they really aren't even getting access to the full store stock. Once that stock is depleted, which was almost instantaneously, they're hosed. While someone like me, that didn't even wake up till 3:15am, was able to pick whichever phone I wanted, sign up for the program, go through a credit check, verify my carrier info, input my payment info and still get the phone I wanted delivered to my door on launch day. It isn't fair to the others that they basically went to the back of the line because they're current customers. Doesn't bode well for a program that Phil was pushing on stage about how fortunate those customers are that they're eligible for the upgrade. If they aren't doing this entirely by mail by next year, my upgrade will be from the carrier, not Apple.

 

[mixstar336]

***USE THE APP***

I can go in right now and make a reservation for an iPhone 7+/7 at a local store through the upgrade program.
[doublepost=1473446392][/doublepost]And pick it up next Friday. Stock is limited - they still have the black version on a couple carriers in 32GB

 

[pcmacgamer]

If this was even remotely true (it isn't) and I was an Apple shareholder, I would be calling for Tim Cook's head. You don't leave money on the table like that. No good money loving company deliberately under-produces for some sort of mythical hype. I mean, how do you think this would even work? Humans are fleeting. If there's no stock, sure, they'll think "wow this is popular" but then they can't buy the damn device because you can't find it anywhere. That's called a lost sale. They'll lose interest and maybe think about it again weeks or months later.
Every year some armchair economist who actually understands very little about business makes this assertion and every year it's patently untrue.

It is people will still demand the device early on. They aren't leaving money on the table as they are still going to get the sales. The underproduction is smart as they then catch up quickly and soon enough have enough to meet the demand. They time it perfectly so they create the hype and still get all potential sales some just have to whine on forums like Macrumors. Humans aren't that fleeting when it comes to an iPhone they are still going to want it when it's in stock. For users engrained in Apple ecosystem they of course are going to want an upgrade. You are honestly ridiculous if you don't think Apple could start manufacturing these a few months in advance and had made enough for everyone come launch day. They would never do that because a limited supply is much better to make phone more sought after. So fanboys can be salivating at the thought of the shiny Apple they can't get in first week or two.

 

[Glene]

also got in at 5AM EST- with no problems.... possibly because it was only a 32 black but I pick up at 10:30 next Friday morning at the store here in Fort Lauderdale

 

[Stratus Fear]

It is people will still demand the device early on. They aren't leaving money on the table as they are still going to get the sales. The underproduction is smart as they then catch up quickly and soon enough have enough to meet the demand. They catch up quick enough so they create the hype and still get all potential sales some just have to whine on forums like Macrumors. Humans aren't that fleeting when it comes to an iPhone they are still going to want it when it's in stock. For users engrained in Apple ecosystem they of course are going to want an upgrade.

Your assertion that a unit of demand is static like that is laughable. For some people that would be interested in the iPhone, there exist reasonable alternatives. If some folks decide to go to a Note 7 instead, for example, because they want a new phone now, that's money lost for Apple. You clearly don't know how economics work.

 

[bitfactory]

This is ridiculous. I enrolled for the program when I bought the phone, so I didn't have a problem, but they need to let the members order from the same stock stream, and just have the phone shipped to the local Apple Store. Or better still, just ship it to the customer's home and keep billing on the first one until it is returned.

Silly.