Target Says Apple Watch Series 2 Orders Will be Delayed, Offers $50 Gift Card to Affected Customers

[kilcher]

Someone in another thread has the answer. Sell way more inventory than you have, promising fast ship dates, just to capture a bunch of sales. Then drop the bad news. Some people will cancel, but many will not, and they end up capturing more sales than they would have otherwise.

The gift card thing is a bit puzzling, but then again, it’s a gift card. Not cash. Not a discount. They still maintain the same amount of (inflated) revenue. It may cost them some inventory cost later on, depending on how many gift cards are actually redeemed. But that pushes the problem down the road. Right now, it’s all about cash flow and revenue.

Yeah, that's BS. Makes no sense.

Step 1: Take pre-order for product you don't have.
Step 2: Seriously piss off customers. This isn't a 2-3 day delay, it's 2-3 weeks. Meanwhile people can walk into an Apple Store and pick one up today. Someone in another thread did it with the exact same model I have on pre-order with Target.
Step 3: Get bad publicity.
Step 4: Give $50 gift card to everyone who pre-ordered, EVEN if they cancel their order.
Step 4: ???
Step 5: Profit.

The fact that Target and Best Buy A) are experiencing the same exact thing, B) have the same exact (new) shipping times, and C) have the same exact response ($50 GC's) tells me this is mostly Apple's problem. Apple meanwhile will spin this to make themselves look good because demand is far exceeding supply.

 

[avanpelt]

I wonder why this is such a botched launch? Did Apple think sales were going to be modest compared to previous years so they had production scale way back? Did a breakdown happen somewhere in the supply chain? Did the typhoon over in Asia cause some unexpected problems? I have to assume that Apple knew full well this was going to be a rocky launch, hence the reason they're not releasing launch weekend statistics for the first time in a long, long time.

 

[jclardy]

Does Apple have anything to sell? No wonder they didn't want to play the numbers game last weekend.

It seems every Apple launch has been like this for a while now. Seemingly starting around the time Angela took over the store (2014), but it might just be whoever is handling their supply chain now with Tim at CEO. For real though - Original Apple Watch - no stock. iPad Pro launch - no apple pencil/keyboard stock for months, iPad Pro 9.7" - no keyboard stock again. MacBook 12" launch - no stock. iPhone SE - same thing. Apple Watch/iPhone 7 launch, no stock.

This is the first iPhone that I haven't received on launch day since the 3GS...and I ordered on pre-order day 4 minutes in.

 

[campyguy]

I wonder how much of this "delay" shipping bit is related to Hanjin's bankruptcy a couple of weeks ago and 60-odd of their tankers being held outside ports around the world?

One of my friends has product sitting on a ship sitting off the coast and he's not happy, and had to pick a different shipper who's now backed up with extra orders... I'll be buying the booze tonight...

 

[Sasparilla]

I wonder how much of this "delay" shipping bit is related to Hanjin's bankruptcy a couple of weeks ago and 60-odd of their tankers being held outside ports around the world?

One of my friends has product sitting on a ship sitting off the coast and he's not happy, and had to pick a different shipper who's now backed up with extra orders... I'll be buying the booze tonight...

From what we've seen in the past, this product (iPhones and watches) - at least initially are flown on aircraft at least to the U.S.. I remember a pilot taking pics once (hopefully he still had his job afterwards).

 

[Jetfire]

I wonder why this is such a botched launch? Did Apple think sales were going to be modest compared to previous years so they had production scale way back? Did a breakdown happen somewhere in the supply chain? Did the typhoon over in Asia cause some unexpected problems? I have to assume that Apple knew full well this was going to be a rocky launch, hence the reason they're not releasing launch weekend statistics for the first time in a long, long time.

My guess is that all Apple's predictions were off. The ratio of 7 to 7+ seems to have flipped from 6 and 6s launches. The IUP program is a mess and they had to get the extra phones they made available this week from somewhere. I also think sales maybe higher than they thought too. Plus they are launching some many countries at once now too.

 

[TMRJIJ]

Yeah, that's it. All the hundreds of millions of Note 7 owners that bought their phone because they wanted a stylus decided to buy an iPhone instead since there were no other Android stylus phones around.

Then they decided to buy a Series 1 AW and a Series 2 as well.

Who buys a phone just because it came with a stylus?

 

[campyguy]

From what we've seen in the past, this product (iPhones and watches) - at least initially are flown on aircraft at least to the U.S.. I remember a pilot taking pics once (hopefully he still had his job afterwards).

Agreed, I've watched my order go from China to Anchorage to LA then back to Seattle. Not a cheap way to get all of the units over here.

The other issue in that part of the world is the current weather situation, getting hammered with the third massive typhoon in a couple of weeks, flying around those storms are probably keeping us from getting some of our toys on time - I can wait a bit longer knowing that... Cheers!

 

[usarioclave]

This isn't the normal situation on launch day. On launch day usually everyone gets some product, and then more product dribbles in via FedEx or UPS randomly as time goes on. That's historically how the Apple launch day supply chain operates.

The fact that two retailers are getting no product at all means that Apple is revamping how it manages its supply chain and the AW2 was the first product in that new process. There's obviously something wrong with that process, and I wouldn't be surprised if those $50 gift cards are going to be offset by Apple at some point.
[doublepost=1474042037][/doublepost]As a note, my iPhone 6 and 7 shipped out of the US on launch day, not out of China. So they've formally started doing all shipping out of the US for launch day items.

 

[PBG4 Dude]

I wonder why this is such a botched launch? Did Apple think sales were going to be modest compared to previous years so they had production scale way back? Did a breakdown happen somewhere in the supply chain? Did the typhoon over in Asia cause some unexpected problems? I have to assume that Apple knew full well this was going to be a rocky launch, hence the reason they're not releasing launch weekend statistics for the first time in a long, long time.

Maybe the products are on a Hanjin boat.

 

[El Hikaru]

After Best Buy and now Target, I started to feel this is a promotion rather than compensation.

 

[OtherJesus]

This Apple iPhone 7 (iPhone 6 Series 3) and Apple Watch Series 1 and Series 2 launch has been rather odd.
Stock seems to be limited everywhere.
No reporting on first week sales.
What happened, Tim?

Was Apple aware of this all before pre orders opened???

Is Apple providing for the vouchers on delayed products???

If you use a lot of questions marks do you feel more important???????????????

 

[smacrumon]

If you use a lot of questions marks do you feel more important???????????????

Emphasis???????

 

[Bubba Satori]

It's the best watch we've ever made.

 

[joueboy]

This sounds like a staged between Apple and some retailers like Target and Bestbuy. There's no way these stores try to sell something they don't have. They should have at least an idea how many orders they can take unless there's a serious glitch in their system. Apple probably paying these gift cards or split 50/50 with retailers, given to a random people who thinks they're not getting their iPhone sooner than they thought. Eventually these people getting a gift cards will ended up buying their iPhone new accessories. In this case an Apple branded accessories or maybe save it for AirPod or Apple cases. Whatever it is, it's getting attention and it's a good marketing tool.

 

[Chupa Chupa]

Who buys a phone just because it came with a stylus?

Obviously someone who buys a Note. Otherwise they'd buy a Galaxy or some non-stulus phone.

 

[MaxDrago]

Target said it is experiencing delays in receiving... from Apple... Target will be emailing a complimentary $50 gift card to affected customers...
Article Link: Target Says Apple Watch Series 2 Orders Will be Delayed, Offers $50 Gift Card to Affected Customers

This isn't as awkward as it seems. Corporate level buyers have contracts with clauses for contingencies... like not receiving things on a major launch day. So far every major retail outfit that's had this issue is offering some compensation to customers. As long as the orders aren't cancelled the retailer still wins. Stop looking at the retail price of a Gift card and a device... they don't tell the whole story. Retailers are selling you a device that they bought for significantly less than they're selling it to you for. The gift card they offer you (if for their stores only), is only worth their cost of goods, not the cost printed on the front. If you buy a $50 widget, and they only spent $24 dollars on the widget (that they sell for for $50 retail), it might sting a little, but they still come out $26 ahead with the iPhone/Apple Watch order your didn't cancel that will still net them more than their cost of that widget you just bought (they're still making more than that). Then they write off the cost of the 'loss' as 'Customer Retention' costs, or better yet... fall back on that purchasing contract and the discounts they get for late fulfillment, which further mitigates their cost. Big box retailers may be annoyed by late (read: re-directed) shipments, but it won't kill them. Meanwhile some Apple Logistics person looks at $300 profit on an in-store sale and writes a heartfelt apology (read: crocodile tears) email to the big box retail stores buyers, and fulfills the contingency portion of the contract giving the retailer $20 off per unit... Right after overnighting a pallet of phones and watches to the Apple store across the street from the affected retailer.

Note: The numbers are made up, but it's how this works. Been there and done that on a much smaller scale.

We should be apologizing to the underpaid frontline retail employer who's getting yelled at for things the logistics and buyers contracts caused.

/me's customer service training prepares him for all the yelling that's about to happen.

Have at it. (read: crocodile smile).

 

[RulinSmoove]

Not JUST the date promised during checkout - when I went to bed last night at 10pm my account STILL said the watch would be delivered today. They obviously knew at 10pm last night that my order hadn't shipped. That's what ticks me off more than anything.

what you know about Ghostly?

 

[theelysium]

I called all the stores in my area. Every store said, "I was supposed to get the watch today on the truck, but there weren't any in the shipment!"

 

[Solomani]

Wow. What a complete turnaround…. since all the MacRumors "know-it-alls" were predicting 2 months ago that this "audio-jackless" iPhone 7 would NEVER SELL.

And all of a sudden, everyone and their Aunt Thelma is demanding one yesterday!

 

[SAIRUS]

Probably diverted stock for the upgrade program after someone realized that they might of created an image that vaguely hints at a promise of a new phone.

 

[kingpushup]

Yeah, that's it. All the hundreds of millions of Note 7 owners that bought their phone because they wanted a stylus decided to buy an iPhone instead since there were no other Android stylus phones around.

Then they decided to buy a Series 1 AW and a Series 2 as well.

lol this comment made me laugh.

I didn't mentioned a stylus. Note 7 didnt sell over 200 million, rather 2 million.

You seem married to Samsung, so we may wonder why are you knocking on MacRumor's door ... and what do you expect to find here?

Most of us are well reasoned, so let me reply to your comment here. Apple estimated 10% increase due to Note 7 recall. Any more than that, say just 15% increase, would suffice to surprise the supply chain and cause delays.

So that's maybe 100-200k more phones. Based on 200M Note 7s, this would mean that recent Apple efforts and recent Samsung fears would need to cause just 0.1% or less to cross the fence. Based on Samsung's 2.5M number, we are talking about 10-20%, assuming that all demand increase was due to consumers who switched from Samsung.

Some likely did switch due to the Geekbench results of iPhone outperforming Note 7. Some consumers may have had no interest in Note 7; rather they were not in the market for a phone or they wanted the new iPhone and dampened interest became renewed for a variety of possible reasons. Some others may have bought for some other reasons. So, Note 7 customers could have been just a couple or few percent (based on Samsung's number) and none of those may have had a craving for a phallus to spring from their phone to compensate for a less responsive Samsung screen.

All in all, thanks for visiting and for the yuckity yucks. Laughter is good for the spirit.

My gf says you are here because you had a bad day and needed to vent by picking a fight. If so, I wish things look up for ya, bud.

 

[Chupa Chupa]

lol this comment made me laugh.

I didn't mentioned a stylus. Note 7 didnt sell over 200 million, rather 2 million.

You seem married to Samsung, so we may wonder why are you knocking on MacRumor's door ... and what do you expect to find here?

Most of us are well reasoned, so let me reply to your comment here. Apple estimated 10% increase due to Note 7 recall. Any more than that, say just 15% increase, would suffice to surprise the supply chain and cause delays.

So that's maybe 100-200k more phones. Based on 200M Note 7s, this would mean that recent Apple efforts and recent Samsung fears would need to cause just 0.1% or less to cross the fence. Based on Samsung's 2.5M number, we are talking about 10-20%, assuming that all demand increase was due to consumers who switched from Samsung.

Some likely did switch due to the Geekbench results of iPhone outperforming Note 7. Some consumers may have had no interest in Note 7; rather they were not in the market for a phone or they wanted the new iPhone and dampened interest became renewed for a variety of possible reasons. Some others may have bought for some other reasons. So, Note 7 customers could have been just a couple or few percent (based on Samsung's number) and none of those may have had a craving for a phallus to spring from their phone to compensate for a less responsive Samsung screen.

All in all, thanks for visiting and for the yuckity yucks. Laughter is good for the spirit.

My gf says you are here because you had a bad day and needed to vent by picking a fight. If so, I wish things look up for ya, bud.

Ha. Ha. Your post made me laugh. I'm hoping you read my post in the wee hours of the morning before your first cup of coffee. Otherwise I suggest you go to Amazon and order a new sarcasm sensor as my post was 100% tounge-in-cheek facetious, not meant to be taken literally or seriously. Others seems to catch on, so again, hoping you were just low on caffeine. I'll give you the benefit of the doubt.

 

[kingpushup]

Ha. Ha. Your post made me laugh. I'm hoping you read my post in the wee hours of the morning before your first cup of coffee. Otherwise I suggest you go to Amazon and order a new sarcasm sensor as my post was 100% tounge-in-cheek facetious, not meant to be taken literally or seriously. Others seems to catch on, so again, hoping you were just low on caffeine. I'll give you the benefit of the doubt.[/QUOTE

Ha. Ha. Your post made me laugh. I'm hoping you read my post in the wee hours of the morning before your first cup of coffee. Otherwise I suggest you go to Amazon and order a new sarcasm sensor as my post was 100% tounge-in-cheek facetious, not meant to be taken literally or seriously. Others seems to catch on, so again, hoping you were just low on caffeine. I'll give you the benefit of the doubt.

Laughed out loud: Haha yes, must fix sensor.

[Echo]: I am checking Amazon.com for you!

Me: No I simply mis-read the sarcasm.

[Echo]: Okay with [Kindle] you will not [miss reading] any [books on sarcasm]

 

[Carlanga]

I'm confused by both Target's and Best Buy's announcements... does Apple not tell them in advance how many units they'll be receiving and on what days?
..
The fact they're giving giftcards seems to be them admitting guilt... what are they guilty of? Did they know they'd have no stock?

No, IMO its apple fault and instead of canceling orders apple prefers to give these retailers a higher cut of the presale (prob $50) if they manage to keep said pre-orders and/or future adjustments/discounts. If it was just one retailer doing this then its prob that retailer fault, but when two big ones do it and give out the same GC amount then IMO is a manufacturers issue.