• Your favorite

    Apple

    ,

    iPhone

    ,

    iPad

    ,

    iOS

    ,
    Jailbreak
    , and
    Cydia
    site.
  • 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.

    Apple Insider
    This article was originally published in forum thread: Apple Responds to Allegations of "Intentional Product Shortages" started by Michael Essany View original post
    Comments 28 Comments
    1. rolandgabor's Avatar
      rolandgabor -
      Here is what happened to me:
      Walked into an apple store at 11am PST looking for an iPad. I was told that there isn't any in stock but i am more than welcome to sign up for a priority list. I was advised that it could take from 2 weeks to up to two months wait to get it depending on how many is on the list although no one knows at Apple how long the list is.
      At my surprise i get an email at 1:25Pm on the same day letting me know that my "iPad has arrived and ready for pick up" at the same store.
      I went back to the store and i was told i got lucky because they just received a " truck load" of iPad's.
      While the idiot was telling me this next to me another shopper arrived and was told that she would not be unable to purchase 2 iPads because they are out of stock.
      I was amazed. Obviously the list wasn't that long since i got mine in just a couple of hours, and if they just received a truck load why wouldn't they sell it?
      In my opinion they are holding back just to preserve the impression how magical all apple products are. It's a big gamble turning buyers away but it is paying off.
    1. realjaja's Avatar
      realjaja -
      I think the intentional pull is true. The day before launch (iP4)I was at the apple store in Santa Monica with a friend to buy an ipad around 3pm. None avail. None. Stood in line that day and got my iP4 around noon. Tons of ipads then.

      Unless they had a crazy shipment before i entered the store, they're def hiding inventory.
    1. realisticmind1's Avatar
      realisticmind1 -
      Quote Originally Posted by bobymicjohn View Post
      I would just like to say that i have purchased every one of apple's iPod touch and iPhone products since the original iPhone, and each one has had their own problems, but none like the iPhone 4. I am truly disappointed in Apple's quality (as well as quantity) and overall handle on this situation.

      I purchased my iPhone 4 a few days ago and the day i open it out of the box and plug it in to iTunes it is in restore mode, instead of the usual mode its new products are in. So i restore to a opy of the 4.0 firmware (hoping to eventually jailbreak) but it gives me an error. So i figure what the heck ill just update. Again an error. So i try about 20 more times 20 different ways with no luck. SO the next day I drive 2 hours to my nearest apple store and luckily for me they had a replacement. I go home with a new iphone.

      So the same day I open it up, sync it, activate it, and call my buddy to try out the face time. But he cant hear me. Microphones broken. I call apple support, they say its a hardware issue blah blah blah. So i got 3 options, drive 2 hours to an apple store and hope for a new one, for 30$ i can order one and have it in 48 hours, or send min in and they see if they can fix it (appox. 10 business days).

      But i gotta have a phone for my job and because of the new sim cards i cant just switch back to my 3gs. So i call in sick the next day, drive to an apple store, they dont have any i order one for 30 dollars, they ask for the broken one i have now, i give it to them they check the box. ooops left my usb cable at home. Can't return it with out a usb cable. WTF i have a draw with at least 30 of those damn things in my house but thats 2 hours away and im not looking to drive 6 more hours just to get rid of this damn phone so i spend another 30 bucks to buy a new goddamn cable at the store just so i can return the stupid piece of crap for the second time. Im just hoping the third times the charm.
      I call BS.

      1. Apple doesnt charge shipping, even for replacement parts. So explain what the $30 was for?

      2. You forgot your usb cable... Guess what. You don't need it. You don;t even need the box. They will just open up the new iPhone if you are doing a swap and give you whatever you gave them. You gave your old charger back? You get the new one. You forgot the usb cable? They keep the new one. Simple. So what would have happened in your scenerio is, they open up the new iPhone, tkae out the USB cable, and hand you everything else. The end.

      Source: Close close close close friend is an Apple retail associate.
    1. Cer0's Avatar
      Cer0 -
      I would say the same or you got a bad genius. The times I had to take my phone in for repairs or exhanges they simply give you a refurb that isn't in a box or anything and you just give them yours like the poster above said. The refurb units have no box at all or cables.
    1. realisticmind1's Avatar
      realisticmind1 -
      Quote Originally Posted by cerote View Post
      I would say the same or you got a bad genius. The times I had to take my phone in for repairs or exhanges they simply give you a refurb that isn't in a box or anything and you just give them yours like the poster above said. The refurb units have no box at all or cables.
      Because he is within 30 day return policy however, most Geniuses would actually have a sales person do an exchange, instead of giving out a refurb (if there was enough new phones in stock.) So you get the whole 9 yards, box, charger everything... so long as your brought your old accessories. What you didn't bring, you won't get. But, you are correct about refurbs. If you are out of the 30 day return, then you will get a refurb, with no box or accessories 99% of the time.
    1. Cer0's Avatar
      Cer0 -
      I got the 3GS and 2 weeks later had to exchange it because the glass was not flat. They gave me a refurb, not a new unit. I bought the 3GS 1 week after release.


      I waited 2 weeks to return it because I hate going to the Mall of America so I was pushing it off for as long as I could before I couldn't stand it.
    1. FerrariCUBU's Avatar
      FerrariCUBU -
      It's no surprise that Apple produces less and/or holds back its products. Any smart company would rather have a shortage than surplus. Plus, it adds a "magical" feeling when you finally get your product. People get mad because Jobs actually knows how to run a company and make money.
    1. Eleni's Avatar
      Eleni -
      Quote Originally Posted by realisticmind1 View Post
      I call BS.

      1. Apple doesnt charge shipping, even for replacement parts. So explain what the $30 was for?

      2. You forgot your usb cable... Guess what. You don't need it. You don;t even need the box. They will just open up the new iPhone if you are doing a swap and give you whatever you gave them. You gave your old charger back? You get the new one. You forgot the usb cable? They keep the new one. Simple. So what would have happened in your scenerio is, they open up the new iPhone, tkae out the USB cable, and hand you everything else. The end.

      Source: Close close close close friend is an Apple retail associate.
      Yep. Went to the Apple Store last night because the speaker on my iPhone 4 broke, gave them the phone and they gave me a new one.