Apple Losing out on Impulse Sales

[wvuwhat]

So... I'm not going to lie. I'm a wee bit intoxicated right now. Monday nights are the nights I head out with friends, because Tuesday is the "slowest" day of the week for my friends and I. Even though I'm unemployed I schedule my interviews on all other days but Tuesday's, because of my friends schedules.

After going to a few Best Buy's and Apple Stores in the NoVA area today I was more than ready to buy a 32GB Wifi. Out of Stock.

I'm sitting here wanting an iPad in my hands right now and have the money to buy instantaneously, or over the internet I should say, waiting for 2 days (Amazon Prime). I don't want to wait 5-7 business days for shipping from the Apple site, nor do I want to pay an additional 100 dollars on Amazon.com even though I have Prime (useless at the moment) and 180 dollars credit.

I know they are doing the "Nintendo Wii" thing or any other "in short supply" thing, but I really want it right now. As I sit here tomorrow in my "right mind" I'm going to reconsider, but why not make it more accessible to everyone and make the money. And... Yes, I do own stock in Apple and am kind of upset that I can not add to the stock price, however small it may be.

 

[MikhailT]

So... I'm not going to lie. I'm a wee bit intoxicated right now. Monday nights are the nights I head out with friends, because Tuesday is the "slowest" day of the week for my friends and I. Even though I'm unemployed I schedule my interviews on all other days but Tuesday's, because of my friends schedules.

After going to a few Best Buy's and Apple Stores in the NoVA area today I was more than ready to buy a 32GB Wifi. Out of Stock.

I'm sitting here wanting an iPad in my hands right now and have the money to buy instantaneously, or over the internet I should say, waiting for 2 days (Amazon Prime). I don't want to wait 5-7 business days for shipping from the Apple site, nor do I want to pay an additional 100 dollars on Amazon.com even though I have Prime (useless at the moment) and 180 dollars credit.

I know they are doing the "Nintendo Wii" thing or any other "in short supply" thing, but I really want it right now. As I sit here tomorrow in my "right mind" I'm going to reconsider, but why not make it more accessible to everyone and make the money. And... Yes, I do own stock in Apple and am kind of upset that I can not add to the stock price, however small it may be.

I'm sure that the fact that Apple has sold a million, they aren't missing out on the impulse sales.

You can always get a friend to drive you to the 24 hours store in NYC and you can stay there all night and day for an iPad.

 

[angemon89]

Man, you got me excited when you mentioned amazon prime. So I rushed to check but it looks as though amazon still isn't selling it.

 

[wvuwhat]

There's many things I'd do for an iPad. Driving/Getting someone to drive to NYC is not one of them... 80% of my shopping, minus groceries, is done online. I'd even pay for 2 day shipping if offered.

I don't understand the thinking behind big corporations about throttling sales. Yes, it keeps it in demand, but I wasn't able to buy a Wii or PS3 within 3 months of their release. I would have bought both, but ended up only with a PS3 (actually, 2 of them) when I was able to get my hands on them. However, had I been able to get them at launch, I probably would have bought 4, one for each of my 3 rooms and family room.

 

[wvuwhat]

Man, you got me excited when you mentioned amazon prime. So I rushed to check but it looks as though amazon still isn't selling it.

I keep refreshing that ****, they won't sell it because of Kindle. However, iPad kicks it out of the water, because of the fact there are at least 8 different DRM'ed sources to get books from, whereas Kindle only has one. I'm happy I just got a Kindle for my step-mom and not myself, because it looks like the iPad is a better alternative. The second they go on sale at Amazon, I will be all over it.

 

[angemon89]

I don't think they are going to sell it at all because of the kindle. They used to have official Amazon product pages for the different iPad models but they got rid of them.

 

[MikhailT]

There's many things I'd do for an iPad. Driving/Getting someone to drive to NYC is not one of them... 80% of my shopping, minus groceries, is done online. I'd even pay for 2 day shipping if offered.

I don't understand the thinking behind big corporations about throttling sales. Yes, it keeps it in demand, but I wasn't able to buy a Wii or PS3 within 3 months of their release. I would have bought both, but ended up only with a PS3 (actually, 2 of them) when I was able to get my hands on them. However, had I been able to get them at launch, I probably would have bought 4, one for each of my 3 rooms and family room.

Dude, they aren't throttling sales. They just can't produce enough of it, they already had to push back the international launch just to get more units for the US market.

There's only three ways to get an iPad: Apple Stores Retail&Online, Best Buys, and Apple resellers like MacMall, local Apple resellers near you and so on.

 

[FrankieTDouglas]

Even though I'm unemployed I schedule my interviews on all other days but Tuesday's, because of my friends schedules.

The bigger question is, if you're unemployed, why would you ever want to buy something you don't need? Maybe the inability to make an impulse purchase is doing you a great favor.

 

[liquidsuns]

This is true. Apple should have set aside some stock specifically for drunken impulse buyers because i too would have purchased several by now.

 

[Nebrie]

I'm surprised that after the ridiculous unexpected sales numbers the Wii posted, that people still think it was an evil ploy. I have a friend who was a <Seattle based megastore> ereader project manager in China and contrary to popular belief, production is *not* a matter of turning a dial on some magical and revolutionary Wizard of Oz machine. It can take several days to weeks to find and setup spare workspace, kidnap and train the Chinese orphans who will be assembling these, and call dozens of suppliers and have them do the same. They then have to call hundreds of their suppliers. Even if they happen to have extra copies of the exact manufacturing machinery you need lying around, trying to buy raw materials at spot price when you under a contract is a nightmare. Most of these suppliers are working with very tight margins and are only able to expand production a small amount at a time. If one critical supplier has problems (say LCDs), then you won't make a single extra product even if every other supplier has doubled production. Behold the miracle of Just-In-Time inventory. That plus the Chinese orphans buys you those rollback prices near and dear to your heart!

Of course, if your hot product *cough Pre* peaks unexpectedly or experiences wild sales swings, you are left with some very expensive manufacturing overcapacity to wind down and very expensive product stockpiles. This is why manufacturers such as Apple like to plan conservatively and have a plan to ramp up, but unfortunately, that's harder than it sounds.

 

[gillybean]

I'm surprised that after the ridiculous unexpected sales numbers the Wii posted, that people still think it was an evil ploy. I have a friend who was a <Seattle based megastore> ereader project manager in China and contrary to popular belief, production is *not* a matter of turning a dial on some magical and revolutionary Wizard of Oz machine. It can take several days to weeks to find and setup spare workspace, kidnap and train the Chinese orphans who will be assembling these, and call dozens of suppliers and have them do the same. They then have to call hundreds of their suppliers. Even if they happen to have extra copies of the exact manufacturing machinery you need lying around, trying to buy raw materials at spot price when you under a contract is a nightmare. Most of these suppliers are working with very tight margins and are only able to expand production a small amount at a time. If one critical supplier has problems (say LCDs), then you won't make a single extra product even if every other supplier has doubled production. Behold the miracle of Just-In-Time inventory. That plus the Chinese orphans buys you those rollback prices near and dear to your heart!

Of course, if your hot product *cough Pre* peaks unexpectedly or experiences wild sales swings, you are left with some very expensive manufacturing overcapacity to wind down and very expensive product stockpiles. This is why manufacturers such as Apple like to plan conservatively and have a plan to ramp up, but unfortunately, that's harder than it sounds.

That's what they want you to believe.

In actuality, Steve Jobs has a warehouse somewhere with 10 million iPads sitting around. Some of them are supposed to go to other countries, but he's withholding them until late May because he's mean. Also he tried to get Amazon to sell them so that people could make impulse online buys but Amazon declined because they don't want it to compete with the Kindle.

 

[itsallinurhead]

Why are you buying expensive electronic items whilst unemployed?

 

[wvuwhat]

The bigger question is, if you're unemployed, why would you ever want to buy something you don't need? Maybe the inability to make an impulse purchase is doing you a great favor.

Maybe some people lived well below their means? Maybe these same people have at least 24 months of living expenses? Maybe I planned better than you? Maybe I have no kids and no women besides a few girlfriends? Who knows?

And ultimately...maybe I can 'woo' some interviewers with my resume and references from an iPad?

 

[hopeman]

Why are you buying expensive electronic items whilst unemployed?

Dude, is that really your call to make??? Kinda superficial judgement imho......sry, not my business but had to chip in my 2c on that.

 

[kevingaffney]

So... I'm not going to lie. I'm a wee bit intoxicated right now. Monday nights are the nights I head out with friends, because Tuesday is the "slowest" day of the week for my friends and I. Even though I'm unemployed I schedule my interviews on all other days but Tuesday's, because of my friends schedules.

After going to a few Best Buy's and Apple Stores in the NoVA area today I was more than ready to buy a 32GB Wifi. Out of Stock.

I'm sitting here wanting an iPad in my hands right now and have the money to buy instantaneously, or over the internet I should say, waiting for 2 days (Amazon Prime). I don't want to wait 5-7 business days for shipping from the Apple site, nor do I want to pay an additional 100 dollars on Amazon.com even though I have Prime (useless at the moment) and 180 dollars credit.

I know they are doing the "Nintendo Wii" thing or any other "in short supply" thing, but I really want it right now. As I sit here tomorrow in my "right mind" I'm going to reconsider, but why not make it more accessible to everyone and make the money. And... Yes, I do own stock in Apple and am kind of upset that I can not add to the stock price, however small it may be.

Good point. Still waiting for launch here in Ireland. New iPhone will be bought first and the longer this goes on, the more tempted I'll be to wait for a 2nd Gen. However people like me will still buy at some stage, so I suppose Apple aren't really losing a sale

 

[striatedglutes]

I'm surprised that after the ridiculous unexpected sales numbers the Wii posted, that people still think it was an evil ploy. I have a friend who was a <Seattle based megastore> ereader project manager in China and contrary to popular belief, production is *not* a matter of turning a dial on some magical and revolutionary Wizard of Oz machine. It can take several days to weeks to find and setup spare workspace, kidnap and train the Chinese orphans who will be assembling these, and call dozens of suppliers and have them do the same. They then have to call hundreds of their suppliers. Even if they happen to have extra copies of the exact manufacturing machinery you need lying around, trying to buy raw materials at spot price when you under a contract is a nightmare. Most of these suppliers are working with very tight margins and are only able to expand production a small amount at a time. If one critical supplier has problems (say LCDs), then you won't make a single extra product even if every other supplier has doubled production. Behold the miracle of Just-In-Time inventory. That plus the Chinese orphans buys you those rollback prices near and dear to your heart!

Thank you writing all of this out. I wish more people could understand the concept of lead time...

 

[ovrlrd]

Thank you writing all of this out. I wish more people could understand the concept of lead time...

I am so sick of people making up conspiracy theories about purposely holding back supply to pretend as if there is more demand. As if Apple is not trying their hardest to meet demand, just like any company in their situation would be trying to do.

The only time I have heard about a company intentionally holding back supply was a company called Best Buy who likes to publish big sales in newspapers and such to draw people in and lure them into buying other products. Those are really only reserved for big sales days like Black Friday and such and not normal procedure.

Apple stores follow pretty strict procedures, when you consider they let people reserve iPads ahead of the next shipment, they would have no reason to hold onto supply for some special sale. The iPad is released in the US and they will sell them as fast as they can because each sale is a profit.

The main reason supply is tight right now is obvious. Demand is really high, and they also have to make enough for the UK launch later this month. Once that is over and demand starts to slow down there will of course be plenty in stock at stores. This same thing occurs whenever a new iPhone comes out.

Conspiracy theories make me laugh. Also the moon landing was a hoax.

 

[FrankieTDouglas]

Maybe some people lived well below their means? Maybe these same people have at least 24 months of living expenses? Maybe I planned better than you? Maybe I have no kids and no women besides a few girlfriends? Who knows?

And ultimately...maybe I can 'woo' some interviewers with my resume and references from an iPad?

You plan on letting them keep that ipad for the resume and references? Otherwise, print it out and submit it on nice paper.

 

[john3478]

I'm sure that the fact that Apple has sold a million, they aren't missing out on the impulse sales.

You can always get a friend to drive you to the 24 hours store in NYC and you can stay there all night and day for an iPad.

is 1 millions iPad a lot? how it is compare to netbook?

 

[DKatri]

They are definitely loosing out on the impulse buys in the UK. A month ago I was talking to two of my friends and both were pretty convinced they were gonna get iPads. Talking to them both again a month later both are now much more uncertain. Giving people more time to think about a device they dont really need will mean they are gonna loose sales.

 

[Mike777]

Losing out on the early adopters is fine, they will ALL purchase the ipad 2.0 which has both wifi+3g, and a camera and widescreen!

 

[Chupa Chupa]

I don't think they are going to sell it at all because of the kindle. They used to have official Amazon product pages for the different iPad models but they got rid of them.

Is that why when you go to Amazon one of the splash screen isn't "buy a Kindle," it's "download the Kindle app for the iPad and iPhone." I think Amazon deleted the iPad presale page is because they don't know when they will be able to get enough stock to be worth selling.

 

[James L]

I'm sure that the fact that Apple has sold a million, they aren't missing out on the impulse sales.

Why would the fact that they have sold a million mean they aren't missing out on sales?

Anytime you have a popular product, and not enough inventory, you are going to miss out on sales... how many you have sold has nothing to do with that.

I don't think it's a great Apple conspiracy or anything... I simply think demand is currently outstripping supply. Anyone who knows Apple's history knows that in years gone by they had huge issues with inventory control, and they are now trying to keep product moving through the channels rather than sit on months of product in warehouses. With a new product it's tricky to gauge exact consumer demand until it's out there. The iPad was popular, so supplies are limited right now.

 

[antiprotest]

I know they are doing the "Nintendo Wii" thing or any other "in short supply" thing, but I really want it right now.

"Are you nuts?"

You KNOW this? Where is the proof?

 

[master-ceo]

And ultimately...maybe I can 'woo' some interviewers with my resume and references from an iPad?

I hope thats the case. lol