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16 GB 3G Massively Understocked, underhanded move by apple

I know it's easy to jump on the conspiracy bandwagon and accuse Apple of manufacturing shortages of 16g units to promote upselling of their more expensive models.

However, Apple understands that if this product launch is to be successful you have to cater to the folks willing to shell out top dollars for a 32g or 64g units as well as those purchasing 16g models. The goal is to get as many ipads in the market as possible. It would be stupid to place roadblocks in the way of those consumers who can only afford/need/want a 16g model.

At the end of the day, if those 16g owners are happy with their product purchase they become an advocate of Apple's products to family and friends. More importantly, that 16g product owner may elect to upgrade to 32g or 64g when the next generation of ipads is released.
 
JS82189 said:
All of the stores were sold out of 16 GB 3G's by 5:30 in my area... 5:30... sales started at 5:00...

this was a move by apple to get people to just go 'o wat the heck heres another $100 give me my iPad now'...

i mean if 2 stores are out of stock by 5:30, that is ridiculous
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You might have a point... but that is business really. Have you ever tried to buy a base line car with just the basic options? Hard to do, but they do offer the stepped up model for just a little more.

You have to give Apple a break here. It may be unlikely - even with the 27 day delay in the shipping of the iPad wifi and the iPad 3G for Apple to adjust the production levels for the 3G model to account for a demand for the 16GB model.

The first few months of sales will give Apple a better idea of what demand for the various units are needed for each size and wifi and 3G model. In the end the Europe and the rest of the world may benefit from Apple's experience in US sales.

I know in my case I thought I would want a 16GB model - great price points :) Then started reading posts here and other places as I sat on the fence on buying an iPad, and decided that maybe the 32GB would be the way to go given the size of some of the apps (Elements comes to mind.. think we will see more of these mega apps in the end.).

After 24 days from launch day I decided that the 64GB was best for my use as a photographer. And could not be happier, unless you count that I thought I could live with the wifi model. So will return that after getting the 3G 64GB one on Friday evening.
 
On April 3rd, when I picked up my pre-reserved 16GB model, a bunch of people in line were asking if they could upgrade their orders, on the spot, and Apple was able to accommodate them. So maybe they anticipated the same would happen... a lot of 16GB preorders would upgrade on their own.

But it's ridiculous to blame Apple for not having enough EXTRAS of any configuration, on the first day of availability. After all, if you preordered one in the last week, they didn't even commit to availability until a few days from now... May 7th I think.

You should have preordered and done yourself and everyone a favor.
 
3goldens said:
They probaly did not make as many of these as it's such a small capacity and they probably figured who the hell would want them anyway?
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The buttload of folks just using the iPad as a web browser and an occasional movie player.

btw, if you looked at the cost to make vs price - Apple makes the least $$ on the 16 GB version(s)
 
If you are Apple, and you can make a fixed total number of iPads, and you anticipate shortages initially, are you going to want the shortages to be more acute on the models with the highest margin or on the lowest margin?

I don't think it's a plot, I think it's simply dealing with limits.
 
I think it was hard to plan, even with the WiFi demand 'known'. Short story: I'd pre-ordered a 3G on Day 1 (got it Friday, of course), 64. I then couldn't take waiting and picked up a WiFi on WiFi 'day after launch', to use at work. I first was going to get a 16, since I was going to use it mainly for a terminal (administer servers), a few e-book manuals, etc.

Then, I started thinking. That's what I thought about the iPhone, but I did get the largest one there, and promptly filled it up with video podcasts, etc. I then changed to the 64 WiFi, as I then thought perhaps I will be able to have a lot of the books I refer to, and other works, on the iPad.

Point is: I wonder if Apple saw this (if many people did this, as was mentioned in previous posts) and did shift production to the larger units? Not sure we'll know until someone does a business school case or other analysis down the road.
 
leesweet said:
Point is: I wonder if Apple saw this (if many people did this, as was mentioned in previous posts) and did shift production to the larger units? Not sure we'll know until someone does a business school case or other analysis down the road.
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Would love to read this study. Don't think Apple will ever share the break downs LOL
 
Bestbuy here received 20. 10 32gig and 10 64gig. I made the comment in line that it was to get us to spend more money.
 
It's hard to say without any concrete evidence. I'm speculating that more people were waiting for the 3G models to be released, which would explain the modest demand for the Wi-Fi only iPad.

There could also have been production issues which caused supply to fall short.
 
JS82189 said:
All of the stores were sold out of 16 GB 3G's by 5:30 in my area... 5:30... sales started at 5:00...

this was a move by apple to get people to just go 'o wat the heck heres another $100 give me my iPad now'...

i mean if 2 stores are out of stock by 5:30, that is ridiculous
Click to expand...

Another drive by poster. I missed the part where they forced people who wanted a 16 gig model to buy a 32 or 64. :rolleyes: And it certainly could not be there were equal amounts of all three models and they sold out of the 16 gig sooner. Nah, gotta be a conspiracy. I suppose some people just like to complain.
 
MikePA said:
Another drive by poster. I missed the part where they forced people who wanted a 16 gig model to buy a 32 or 64. :rolleyes: And it certainly could not be there were equal amounts of all three models and they sold out of the 16 gig sooner. Nah, gotta be a conspiracy. I suppose some people just like to complain.
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1) It definitely was not the case that there were equal amounts of all models at the Apple Store I was at. They sold out of the 16GB model shortly after the initial group was let in the store. At 5:20, 20 minutes after opening they were gone. Only 32 and 64s were available. It took another hour and a half to sell out of the 32GBs and the 64s, I was later told, were all gone 45min to an hour after that.

2) Rationally, if they don't have the model you want you walk away. But when you have an eagerly anticipated product like the iPad, and you've been waiting in line, and no one can tell you when the model you want will be available, you feel you've "invested" too much time and emotion to walk away. That is what marketing is all about. It's hard to walk away rather than just spend the extra $100. It's a subtle (and legal) "bait and switch."

3) If the 64GBs were in short supply then I'd easily chalk it up to supply issues. But 16GB NAND is pretty ubiquitous these days. On its face it seems Apple made an economic decision - they have limited production abilities and labor costs are the same whether they produce a 32 or 64 as a 16GB, yet they make more profit on the latter two. So of course they are going to make more of those models when it's clear they can sell them through. It's not a conspiracy, it's simple business.
 
Yea I strolled in to Best Buy this Sunday morning and asked for a 16gb 3G. The clerk said that he didn't even know they made a 16 GB 3G. He said all they received were 32 and 64GB models and they had 2 32's left and did I want one or not?
Well I caved and said "Yes Please, Want!" Conspiracy or marketing? I could have walked and had nothing or pay the extra and get some more storage. It really wasn't a choice by then. At least I have my precious!! :eek:
 
WLS said:
Yea I strolled in to Best Buy this Sunday morning and asked for a 16gb 3G. The clerk said that he didn't even know they made a 16 GB 3G. He said all they received were 32 and 64GB models and they had 2 32's left and did I want one or not?
Well I caved and said "Yes Please, Want!" Conspiracy or marketing? I could have walked and had nothing or pay the extra and get some more storage. It really wasn't a choice by then. At least I have my precious!! :eek:
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So they only had 2 32's left? It's a conspiracy to prevent people from buying the 64GB!
 
MikePA said:
Another drive by poster. I missed the part where they forced people who wanted a 16 gig model to buy a 32 or 64. :rolleyes: And it certainly could not be there were equal amounts of all three models and they sold out of the 16 gig sooner. Nah, gotta be a conspiracy. I suppose some people just like to complain.
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As I said before, Apple is trying to get a handle on what units will be the most in demand over the long haul. In the 1st month Apple can't win on any account. They produce lots of 16GB models and they sit on the shelves for those that want the 32/64 models. Each demographic for the wifi and 3G model could end up being different.

I think in the end as I have stated that Europe may benefit from Apple's supply and demand side experience here in the US...
 
GoHack said:
Why did Apple even come out w/a 16 gb if it's goal was to try to sell the more expensive ones? It doesn't make sense.

.
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You mean, why did they come out with a 16gb model if the theory that they deliberately had shortages of those models in order to upsell customers is true.

First, I am pretty sure that's not what happened. I think they knew they'd have shortages in some or all models due to laws of physics about how many they could build prior to launch, and if push comes to shove, they are going to protect supplies of higher margin models first. I doubt they wanted shortages of any model, but if they had to pick, 16gb is probably what they'd pick since profit margins were lower.

Second, they did sell a lot of 16gb models, and anybody who wants one can order one from the Apple site and get it in a week or so. The item is available, just hard to find on launch day.

Although if we assume the upsell conspiracy is right, the reason to have the 16gb is that you need bait if you're to run a bait and switch :rolleyes:
 
odyssey924 said:
My local Best Buy in Chico only got 5 64GB models. That's it... Luckilly, that's what I wanted and I was number 5! :D
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From my size guessing based on the size of the stacks...

The Best Buy in Murrieta CA had 1 16Gb (which I got) around 5 32 gb and about 15 64 gb. Another local Best Buy only had 64 gb units.
 
There was plenty of 16gb wi-fi at launch at the store I went to. I doubt Apple is massively under stocking the 16gb on purpose.
 
Oh, it's clear that Best Buys had only/primarily 64gb, for whatever reason. But I doubt Best Buy sold more than 10% of launch-day 3g iPads. They were stocked in name only.
 
Not a 3g... but I have been waiting to get my 16GB ipad wifi since 04/07. They are supposed to send me one to replace mine which has dead pixels. This is after I have called and they have "expedited" my request twice.

I was originally told 5-7 business days max. My ipad still has not shipped.
 
Since all the 3gs had sold out at the Apple store I went to (Pentagon City) within a couple of hours, I cannot see any conspiracy just because the 16s sold out first.

They could have had fewer 16s on the first day as a business decision because of market research or assessing the mail order patterns. Also they may have thought that someone going for the lower price point would go for the cheapest 16 wifi and would not spend another $130 for the 3g. Maybe they thought the 3g buyers were more likely to want the 64 or 32s. When someone is already paying $700 for an iPad, it's a big purchase, and paying another $100 for the 64 is not a big disincentive to get an iPad with more storage on the first day. Finally, as several people have mentioned, a person can still get the 16 3g by ordering or waiting for restocking.
 
I don't know what studies Apple did to determine the ratio of 16/32/64GB models that should be made, but my own "study" of reading these forums over the last few weeks is that the vast majority went 64GB.
 
WLS said:
Yea I strolled in to Best Buy this Sunday morning and asked for a 16gb 3G. The clerk said that he didn't even know they made a 16 GB 3G. He said all they received were 32 and 64GB models and they had 2 32's left and did I want one or not?
Well I caved and said "Yes Please, Want!" Conspiracy or marketing? I could have walked and had nothing or pay the extra and get some more storage. It really wasn't a choice by then. At least I have my precious!! :eek:
Click to expand...

Could this be ignorance on the part of the clerk?
 
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