Apple Responds to Allegations of "Intentional Product Shortages"
On more than one occasion, more than just a few MMi readers and contributors have speculated on our forums that Apple could very well be supporting intentional product shortages - that is, knowingly producing fewer iDevices than necessary to meet current demand and, therefore, drive demand even further.
Well, if you missed it during all the hoopla surrounding the release of Apple's rock 'em sock 'em 3rd quarter earnings late yesterday afternoon, executives in Cupertino were put on the spot during the earnings conference call and bluntly asked if supplies can't keep up with demand because that's the way Apple prefers it to be. It was Gene Munster with Piper Jaffray who finally pushed Apple Chief Operating Officer Tim Cook into the admission (one that some will, naturally, still doubt the validity of) that Apple is doing everything it can to work with parts suppliers to make as many iDevices as consumers want in the fastest time possible.
"We do not purposely create a shortage for buzz," Cook told Munster. "We are selling every unit we can make," he said. Ultimately, Cook pointed to the iPad and its unexpected sales success as the biggest culprit for supply shortages. Ahead of the product's release, Apple planned to mass produce one million iPads per month. Even with such an aggressive initial product run, the company manged to consistently eat through supply reserves, selling 3.27 million iPads in the quarter of the tablet's release.