YayMayorBee said:
I highly doubt there is ANY supply constraints. This is merely a way to trick investors into a false confidence boost, making them think the iPad is performing above expected (and no I am not saying its a flop)
Watch apple stock SKY ROCKET on Monday morning.
You cannot tell me that after years of design, rumors, then a launch date TWO MONTHS AGO that they didnt have enough time to make enough?
This could be so. It's a very effective ploy and isn't going to be questioned.
First, any high-level executive doing this to manipulate the stock prices would be subject to severe penalties. (Think Ken Lay, et al, of Enron)
Second, have you ever heard of JIT (Just In Time) manufacturing-- where, ideally, the manufacturer stocks no inventory of parts or finished goods. When products are built by other companies (as with most of Appe's products) they are shipped directly to the retailers or end users. To avoid blips in the supply chain, Apple maintains a very small inventory at several sites around the world.
Apple's resellers must forecast, schedule, (and accept delivery) of their product requirements 3-6 months in advance and update them monthly in order to receive a workable discount (profit margin).
When a new product is developed, one of the most difficult processes is to determine demand with any degree of accuracy. This is used to "ramp up" production, build small inventories, and "prime the pump" by shipping initial stock to retailers. Then the JIT process takes over.
There are several ways to determine demand-- things like: pre-orders; surveys; public betas...
When you are dealing with new or high technology, a part shortage anywhere in the supply chain can disrupt the well-oiled JIT process. This is why Apple places large advance orders for critical parts and second-sources suppliers of same.
The ability to do all this well gives Apple the ability to make high profits on reasonably-priced products.
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