Amazing this 3GS is. Apple couldn't keep up with the demand with its 3GS supply. I know I love mine and I have recommended it to 2 newbees that also bought in. My friends with their 3G phones want them too. Just goes to show you to give the people what they want and they will buy in droves- Video, better camera, faster speed and better battery, more storage, and yes MMS. And of course the App store keeps on growing.
OMFG you actually said something positive about Apple
It is hard to understand who would be disappointed by selling a product faster than it can be manufactured. Apples manufacturing process has historically been superior to there competition, so no issues there. Apple will almost certainly beat estimates across the board. The new accounting rules are the big wild card. I am looking forward to seeing the effect of that change. Will apple bring all deferred revenue into this qtr or will/can they hold some back as backlog? These are the unknowns that I would focus on. As a manufacturer myself I would love to be in the position of not being able to keep up with demand, it is by far better than the alternative.
The source of disappointment is customer frustration and carrier frustration. If you know the industry, outside of the US and UK, things have been bad with the iPhone 3GS. Sure, having a super elite product is all good and fun, if people can deal with that...
But there were tons of promises made by Apple and the telcos and a lot of mismanagement in customer pre-bookings and long wait times.
As an analogy, it's always great if you have a bakery and your hot pies are flying of the shelves - but not when you promised there'd be enough for everyone and you've got 500 people who've been in the queue all day, and you tell them, "Sorry, come back tomorrow", and the same thing happens the next day. And the next. And the next...
This is not a case of Apple being "fortunate", it's swung to the side of supply chain mismanagement.
I think it's fine if the shares pull back a bit based on this 'disappointment.' That leaves more room for a slightly more sustained upside when supply improves, as it surely will....It would have been far worse to have met the demand by ramping up supply too quickly, with all the attendant compromise on quality.
Quote:
Originally Posted by schmrtzzz
In Europe supply is low since the introduction in june. At the iPod event early september Apple said problems were being resolved, but there are still no signs that they have grips on it..... know lots of people that are so disappointed en so tired of waiting that they bougth another smartphone or are at least considering that. And that's too bad...
Quote:
Originally Posted by Quadra 610
To "disappoint" based on inability to meet skyrocketing demand is pretty impressive all the same.
Quote:
Originally Posted by EUiPhoneUser
Just to add anecdotal evidence for supply shortages: The introduction of iPhone 3GS was delayed both in Bulgaria and Greece by a month or so. ..... Currently, the only way to get the 3GS in Bulgaria is to sign a two year contract in order to be added to a waiting list. The estimated wait time is 1-2 weeks! .... Online checks suggest that the iPhone 3GS is not freely available in Greece either.
Quote:
Originally Posted by Dr Millmoss
It's a relatively good problem to have, but still a problem. In the bad old days, Apple had a terrible time accurately forecasting demand, which left them with both too little and too much product. This mess was straightened out after Jobs returned. In fact cleaning up forecasting and inventory ... in part led to the turn-around. The cause appears to be different this time (and maybe out of Apple's control), but still serves to show that an inability to meet demand is nearly as bad as having excess product on the shelves. Either way, it's money left on the table -- and in business, you never want to do that.
I agree with Dr Millmoss.
Apple has promised supply to improve but the anecdotal evidence is there that there are still supply problems. And this has happened in Steve Job's absence, and maybe since he's been back he/Apple are still struggling.
From a financially conservative point of view you could say, good, let 'em line up and we'll be happy. But eventually lost sales and brand damage can occur.
It depends which side of the coin you favour. Apple could be a bigger and more popular brand, *maybe* quality will dip. Or, Apple remains growing gradually as it has, more or less the same quality.
It should be noted that if you can't make enough to sell, it may mean you can't make enough replacement units/ parts to service those who have already bought and face problems. That is a bad situation. There are other supply issues, for example with 15" unibody batteries ( http://www.hardmac.com/news/2009/10/...body-batteries )
This means for both consumers and businesses, you may not be able to supply a level of service and confidence they need.
As it stands, for me now in Malaysia, an iPhone is no longer an option if my current iPhone 3G dies (it is about a few months past its 1 year warranty ~ factory unlocked from Singtel in Singapore).
I could get an iPhone 3GS from Maxis (exclusive Malaysian telco) but only tied to a contract, they rescinded the ability to buy without contract. And then the wait period quoted is about one month. What about those who need replacement units due to warranty issues? Especially if you are on a contract, you could be paying your contract and still waiting for your replacement unit. Sometimes the service management is not there, I do not feel confident that they have allocated enough service parts/ replacement units because they are busy trying to make and fulfill iPhone *contract* sales.
Each day my iPhone battery is used, and there is no option that I know of to have a battery replacement service. Luckily after a year+ things are okay but I mostly turn off 3G.
At the end of the day, I guess it's business. Apple and the telcos are run by humans, and Steve Job's involvement in Apple, I think, will remain at an advisory level or reduce slowly over time.
But then I've got to think about my life, and my "business" (income). So the next phone for me could be back to a Sony Ericsson, despite the iPhone 3G being pretty much all I ever wanted in a phone, iPod, PDA, etc. etc.
Maybe Apple doesn't need my business, fair enough. But this whole iPhone 3GS fiasco has made me rethink being to tied down to a Mac and the Apple ecosystem. Out here in the more volatile developing world. Though just being in a developing country shouldn't be the issue if the problem lies with Apple making to many promises in their global iPhone launches.
Eventually things may go the way of Apple being more popular/ more accessible in the US and UK compared to the global growth it has seen. Certainly the iPhone 3GS has been more easily obtained in the US and UK compared to the rest of the world, AFAIK.
Apple has promised supply to improve but the anecdotal evidence is there that there are still supply problems. And this has happened in Steve Job's absence, and maybe since he's been back he/Apple are still struggling.
From a financially conservative point of view you could say, good, let 'em line up and we'll be happy. But eventually lost sales and brand damage can occur.
It depends which side of the coin you favour. Apple could be a bigger and more popular brand, *maybe* quality will dip. Or, Apple remains growing gradually as it has, more or less the same quality.
It should be noted that if you can't make enough to sell, it may mean you can't make enough replacement units/ parts to service those who have already bought and face problems. That is a bad situation. There are other supply issues, for example with 15" unibody batteries ( http://www.hardmac.com/news/2009/10/...body-batteries )
This means for both consumers and businesses, you may not be able to supply a level of service and confidence they need.
As it stands, for me now in Malaysia, an iPhone is no longer an option if my current iPhone 3G dies (it is about a few months past its 1 year warranty ~ factory unlocked from Singtel in Singapore).
I could get an iPhone 3GS from Maxis (exclusive Malaysian telco) but only tied to a contract, they rescinded the ability to buy without contract. And then the wait period quoted is about one month. What about those who need replacement units due to warranty issues? Especially if you are on a contract, you could be paying your contract and still waiting for your replacement unit. Sometimes the service management is not there, I do not feel confident that they have allocated enough service parts/ replacement units because they are busy trying to make and fulfill iPhone *contract* sales.
Each day my iPhone battery is used, and there is no option that I know of to have a battery replacement service. Luckily after a year+ things are okay but I mostly turn off 3G.
At the end of the day, I guess it's business. Apple and the telcos are run by humans, and Steve Job's involvement in Apple, I think, will remain at an advisory level or reduce slowly over time.
But then I've got to think about my life, and my "business" (income). So the next phone for me could be back to a Sony Ericsson, despite the iPhone 3G being pretty much all I ever wanted in a phone, iPod, PDA, etc. etc.
Maybe Apple doesn't need my business, fair enough. But this whole iPhone 3GS fiasco has made me rethink being to tied down to a Mac and the Apple ecosystem. Out here in the more volatile developing world. Though just being in a developing country shouldn't be the issue if the problem lies with Apple making to many promises in their global iPhone launches.
Eventually things may go the way of Apple being more popular/ more accessible in the US and UK compared to the global growth it has seen. Certainly the iPhone 3GS has been more easily obtained in the US and UK compared to the rest of the world, AFAIK.
many many timers a company stock has soared on un-filled demand . the thin ice of the high stock price plummets when the demand stays high and supply remains spotty or odd.
I think it's fine if the shares pull back a bit based on this 'disappointment.' That leaves more room for a slightly more sustained upside when supply improves, as it surely will.
It would have been far worse to have met the demand by ramping up supply too quickly, with all the attendant compromise on quality.
This is disciplined execution on Apple's part. And if the market can't see that, no big deal in the short run.
---
Anant: you are absolutely right. It's about Apple's disciplined execution.
Anant: you are absolutely right. It's about Apple's disciplined execution.
I suppose it is discipline when tons of people and companies are wanting to throw money at you and you're able to hold back production of your most popular product. And discipline in maintaining a straight face, promising publicly that supply issues have been resolved when this is clearly not true a month later.
I suppose it is discipline when tons of people and companies are wanting to throw money at you and you're able to hold back production of your most popular product. And discipline in maintaining a straight face, promising publicly that supply issues have been resolved when this is clearly not true a month later.
I don't believe that "discipline" plays a role here. Apple clearly would like supply to meet demand, and they will do as much as they can to make it happen. I also don't see much percentage in Apple claiming that supply issues have been resolved if they are not, to the best of their ability. One reality we know about is the steadily increasing demand for the product, and chronic parts supply shortage worldwide due to the recession, among other factors. If this goes on, it's a problem. If not, it's just a blip, and maybe a small blip at that.
Comments
Meh, I was making a joke. Didn't come out right. Ah well.
Might not have "come out right" but we still got it and it was funny.
Amazing this 3GS is. Apple couldn't keep up with the demand with its 3GS supply. I know I love mine and I have recommended it to 2 newbees that also bought in. My friends with their 3G phones want them too. Just goes to show you to give the people what they want and they will buy in droves- Video, better camera, faster speed and better battery, more storage, and yes MMS. And of course the App store keeps on growing.
OMFG you actually said something positive about Apple
It is hard to understand who would be disappointed by selling a product faster than it can be manufactured. Apples manufacturing process has historically been superior to there competition, so no issues there. Apple will almost certainly beat estimates across the board. The new accounting rules are the big wild card. I am looking forward to seeing the effect of that change. Will apple bring all deferred revenue into this qtr or will/can they hold some back as backlog? These are the unknowns that I would focus on. As a manufacturer myself I would love to be in the position of not being able to keep up with demand, it is by far better than the alternative.
The source of disappointment is customer frustration and carrier frustration. If you know the industry, outside of the US and UK, things have been bad with the iPhone 3GS. Sure, having a super elite product is all good and fun, if people can deal with that...
But there were tons of promises made by Apple and the telcos and a lot of mismanagement in customer pre-bookings and long wait times.
As an analogy, it's always great if you have a bakery and your hot pies are flying of the shelves - but not when you promised there'd be enough for everyone and you've got 500 people who've been in the queue all day, and you tell them, "Sorry, come back tomorrow", and the same thing happens the next day. And the next. And the next...
This is not a case of Apple being "fortunate", it's swung to the side of supply chain mismanagement.
It's a phone, not a rare jewel or vintage wine.
I think it's fine if the shares pull back a bit based on this 'disappointment.' That leaves more room for a slightly more sustained upside when supply improves, as it surely will....It would have been far worse to have met the demand by ramping up supply too quickly, with all the attendant compromise on quality.
In Europe supply is low since the introduction in june. At the iPod event early september Apple said problems were being resolved, but there are still no signs that they have grips on it..... know lots of people that are so disappointed en so tired of waiting that they bougth another smartphone or are at least considering that. And that's too bad...
To "disappoint" based on inability to meet skyrocketing demand is pretty impressive all the same.
Just to add anecdotal evidence for supply shortages: The introduction of iPhone 3GS was delayed both in Bulgaria and Greece by a month or so. ..... Currently, the only way to get the 3GS in Bulgaria is to sign a two year contract in order to be added to a waiting list. The estimated wait time is 1-2 weeks! .... Online checks suggest that the iPhone 3GS is not freely available in Greece either.
It's a relatively good problem to have, but still a problem. In the bad old days, Apple had a terrible time accurately forecasting demand, which left them with both too little and too much product. This mess was straightened out after Jobs returned. In fact cleaning up forecasting and inventory ... in part led to the turn-around. The cause appears to be different this time (and maybe out of Apple's control), but still serves to show that an inability to meet demand is nearly as bad as having excess product on the shelves. Either way, it's money left on the table -- and in business, you never want to do that.
I agree with Dr Millmoss.
Apple has promised supply to improve but the anecdotal evidence is there that there are still supply problems. And this has happened in Steve Job's absence, and maybe since he's been back he/Apple are still struggling.
From a financially conservative point of view you could say, good, let 'em line up and we'll be happy. But eventually lost sales and brand damage can occur.
It depends which side of the coin you favour. Apple could be a bigger and more popular brand, *maybe* quality will dip. Or, Apple remains growing gradually as it has, more or less the same quality.
It should be noted that if you can't make enough to sell, it may mean you can't make enough replacement units/ parts to service those who have already bought and face problems. That is a bad situation. There are other supply issues, for example with 15" unibody batteries ( http://www.hardmac.com/news/2009/10/...body-batteries )
This means for both consumers and businesses, you may not be able to supply a level of service and confidence they need.
As it stands, for me now in Malaysia, an iPhone is no longer an option if my current iPhone 3G dies (it is about a few months past its 1 year warranty ~ factory unlocked from Singtel in Singapore).
I could get an iPhone 3GS from Maxis (exclusive Malaysian telco) but only tied to a contract, they rescinded the ability to buy without contract. And then the wait period quoted is about one month. What about those who need replacement units due to warranty issues? Especially if you are on a contract, you could be paying your contract and still waiting for your replacement unit. Sometimes the service management is not there, I do not feel confident that they have allocated enough service parts/ replacement units because they are busy trying to make and fulfill iPhone *contract* sales.
Each day my iPhone battery is used, and there is no option that I know of to have a battery replacement service. Luckily after a year+ things are okay but I mostly turn off 3G.
At the end of the day, I guess it's business. Apple and the telcos are run by humans, and Steve Job's involvement in Apple, I think, will remain at an advisory level or reduce slowly over time.
But then I've got to think about my life, and my "business" (income). So the next phone for me could be back to a Sony Ericsson, despite the iPhone 3G being pretty much all I ever wanted in a phone, iPod, PDA, etc. etc.
Maybe Apple doesn't need my business, fair enough. But this whole iPhone 3GS fiasco has made me rethink being to tied down to a Mac and the Apple ecosystem. Out here in the more volatile developing world. Though just being in a developing country shouldn't be the issue if the problem lies with Apple making to many promises in their global iPhone launches.
Eventually things may go the way of Apple being more popular/ more accessible in the US and UK compared to the global growth it has seen. Certainly the iPhone 3GS has been more easily obtained in the US and UK compared to the rest of the world, AFAIK.
I agree with Dr Millmoss.
Apple has promised supply to improve but the anecdotal evidence is there that there are still supply problems. And this has happened in Steve Job's absence, and maybe since he's been back he/Apple are still struggling.
From a financially conservative point of view you could say, good, let 'em line up and we'll be happy. But eventually lost sales and brand damage can occur.
It depends which side of the coin you favour. Apple could be a bigger and more popular brand, *maybe* quality will dip. Or, Apple remains growing gradually as it has, more or less the same quality.
It should be noted that if you can't make enough to sell, it may mean you can't make enough replacement units/ parts to service those who have already bought and face problems. That is a bad situation. There are other supply issues, for example with 15" unibody batteries ( http://www.hardmac.com/news/2009/10/...body-batteries )
This means for both consumers and businesses, you may not be able to supply a level of service and confidence they need.
As it stands, for me now in Malaysia, an iPhone is no longer an option if my current iPhone 3G dies (it is about a few months past its 1 year warranty ~ factory unlocked from Singtel in Singapore).
I could get an iPhone 3GS from Maxis (exclusive Malaysian telco) but only tied to a contract, they rescinded the ability to buy without contract. And then the wait period quoted is about one month. What about those who need replacement units due to warranty issues? Especially if you are on a contract, you could be paying your contract and still waiting for your replacement unit. Sometimes the service management is not there, I do not feel confident that they have allocated enough service parts/ replacement units because they are busy trying to make and fulfill iPhone *contract* sales.
Each day my iPhone battery is used, and there is no option that I know of to have a battery replacement service. Luckily after a year+ things are okay but I mostly turn off 3G.
At the end of the day, I guess it's business. Apple and the telcos are run by humans, and Steve Job's involvement in Apple, I think, will remain at an advisory level or reduce slowly over time.
But then I've got to think about my life, and my "business" (income). So the next phone for me could be back to a Sony Ericsson, despite the iPhone 3G being pretty much all I ever wanted in a phone, iPod, PDA, etc. etc.
Maybe Apple doesn't need my business, fair enough. But this whole iPhone 3GS fiasco has made me rethink being to tied down to a Mac and the Apple ecosystem. Out here in the more volatile developing world. Though just being in a developing country shouldn't be the issue if the problem lies with Apple making to many promises in their global iPhone launches.
Eventually things may go the way of Apple being more popular/ more accessible in the US and UK compared to the global growth it has seen. Certainly the iPhone 3GS has been more easily obtained in the US and UK compared to the rest of the world, AFAIK.
many many timers a company stock has soared on un-filled demand . the thin ice of the high stock price plummets when the demand stays high and supply remains spotty or odd.
dozens of fine companies never recovered
performance means exactly that .
apple is immune to all that
its stock will increase for yrs to come
I think it's fine if the shares pull back a bit based on this 'disappointment.' That leaves more room for a slightly more sustained upside when supply improves, as it surely will.
It would have been far worse to have met the demand by ramping up supply too quickly, with all the attendant compromise on quality.
This is disciplined execution on Apple's part. And if the market can't see that, no big deal in the short run.
---
Anant: you are absolutely right. It's about Apple's disciplined execution.
---
Anant: you are absolutely right. It's about Apple's disciplined execution.
I suppose it is discipline when tons of people and companies are wanting to throw money at you and you're able to hold back production of your most popular product. And discipline in maintaining a straight face, promising publicly that supply issues have been resolved when this is clearly not true a month later.
I suppose it is discipline when tons of people and companies are wanting to throw money at you and you're able to hold back production of your most popular product. And discipline in maintaining a straight face, promising publicly that supply issues have been resolved when this is clearly not true a month later.
I don't believe that "discipline" plays a role here. Apple clearly would like supply to meet demand, and they will do as much as they can to make it happen. I also don't see much percentage in Apple claiming that supply issues have been resolved if they are not, to the best of their ability. One reality we know about is the steadily increasing demand for the product, and chronic parts supply shortage worldwide due to the recession, among other factors. If this goes on, it's a problem. If not, it's just a blip, and maybe a small blip at that.
How can this be? The Pre was supposed to be the iPhone killer, or was that the Instinct?
That actually made me laugh!