75% of Apple stores sold out of iPhone 4S on Black Friday, iPad sales up 68% - Page 2

Bingo! Especially the part I bolded.

Again, it really isn't that complicated:

The only marketing strategy Apple needs is to make "insanely great" products!

The rest, as they say, will take care of itself.

I see it exactly the opposite. With only one or two manufacturers now, if one has quality issues what is Apple going to do - not use them and not ship iPads? I imagine the screen issues on the iPad2 infuriate plenty of managers at Apple - not just SJ when he was alive.

By investing in multiple companies, Apple is putting them all on notice "Hey you guys, you can be replaced - even if we have to build up your competitors to do it!". People who think Apple won't change due to being 'backed into a corner" need to ask first Motorola and then IBM about how committed Apple can be to maintaining the status quo "just because".

If they are investing in multiple vendors to have backups then sure, but they already have primaries and backups that already play off each other. What I'm seeing is all the vendors being pushed to capacity so that there is no viable backup to steal business from at least not on the onset. If after the initial demand dies they can then leverage these suppliers against each other, but at first I see them going all in.

In Defense of the Idea that Apple Intentially limits supply;

I of course do not know because I do not work for apple, but I firmly believe that Apple is not dumb, and will use all available market tatics to ensure the highest profit. (Not the most units sold) conversely, Apple isn't simply going to ignore market economics and shoot itself in the foot.

Achieving the highest profit sometimes means not trying to sell to everyone, (flooding the market) it is a fine line balance between quantity vs unit profit. You make more money selling 100 widgets for $150 each than selling 175 widgets at $75 each.

For more info Please Google (or Wiki)
Scarcity value
Snob effect

and to a lesser degree;
Veblen good


A Simplistic Example.

Reports of "xxxx product sitting on shelves collecting dust" can influence people that the product is not desirable, or good, or selling well, even though it may have just been overproduced. This can help kill any demand the product had.

Conversely reports of "Lines out the door for yyyy product" Can influence people in the reverse manner that it "must" be good/desirable etc... That spurs demand even further.

There is a reason that Toyota advertises the Camry as the "Best Selling sedan for 5 years" etc.. The perception of what "Others" are doing, buying, desiring effects our judgment.

Also,

Overproduction can lead to "Clearance sales" and thus reduced value, For example, if apple had produced 200M Ipads (assuming it could) and stocked them in retail outlets, it would be quite some time for those retail outlets to sell them, Then, the Ipad could take on the appearance of a commodity (not good for perceived value) and some retailers may have sales (now only $349 for the Ipad wifi!!!) to clear space, thus further driving down perceived value.

I love you. But when I say it, I'm a troll.

Apple depends on a certain menality (NOT for all though, but many) to drive their products. Best Buy isn't as high end as Apple and that's what I meant in the other thread. Retail outlets depend to devalue the brand. I mean, Value City has American Eagle but many would rather go to the store to get it.

Some are calling Missoni for Target a terrible marketing scheme as it devalues the high end product, instead of it being avalible in stores like Saks Fifth. Apple works the same. If Apple became an every day computer, it would loses overal profitablity.

We also have reports from others in the supply chain who produce the parts of the iPhone.

Such as LCD screens and internal memory storage production has been pushed to capacity. There is a limit to what can be produced within a given time frame.

What exactly is that "certain mentality"?

To buy high end, quality products?

Then there's

I'm a buy it just because it's popular!

Just look at how the Wii sold. It was more a popularity thing than anything. I had it but it was no big deal.

Which is why Apple will never produce a netbook class product, and why they get labeled as being "elitist"...


You make even more money by making products that people want above all others, and then being able to fulfill that demand.

The only thing holding Apple back the past four years has been their overall production capacity. Which is why I think you see them aggressively obtaining multiple suppliers for future products.


I will right after you google "relevance"


First you have to produce more than there is demand for. Something Apple hasn't had a problem with. They have a production problem. Until they get that solved, it will be kind of hard to have an over production problem


Ah, there is hope after all...

And the highest profit is selling as many units as possible. Note that Gatorguy claims "It's beyond a reasonable belief to think [could] run out of new products with days of their release." I questioned his statement with...
and he replied with
That's not a market strategy, that's an idiotic conspiracy theory. There is simply no evidence that Apple is choosing not to produce or stockpiling merchandise to create an artificial demand over a sale.

But many companies have done this before. It's a manner of economics too. Apple doesn't want to overproduce. They could easily conquer demand, but they might shoot themselves in the foot by not doing soo. Don't wnat too many iPads out there.

Successful ones? Cite some examples.


Really? Do share!


Yes, heaven forbid if that happens

Ugh... I feel like I'm talking with alien abductionists...

Nintendo for one. Nintendo has stated that they had the capacity to meet demand, but could not simply because they did not know when demand would decrease exactly.

You're using a red herring there and say that you feel like you're talking to alien abuctionists, but I really somehow doubt you ever met one.

I mean that Apple doesn't want too many iPads just sitting on the shelves. I mean if that happened, then that would create a mess of having to buy the iPads back. Look at the HP Touchpad situation. BestBuy wanted to sell the devices back to HP, until the Toucpad went on a firesale.

To buy a high quality product requires a certain mentality?




A bit of revisionism in your thought process.

The Wii was the first and for a while the only gaming console with wireless controlling. It was a smash hit from the beginning.

The PS3 and XBOX 360 came out with wireless controllers and Kinect afterward because of the popularity of the Wii.

Just because this was Ninentedo's situation. How do you automatically put that on Apple?




Apple sells every iPad it makes before it even makes it off of the plane into the United States. You have not given any real evidence that they are holding back.

Exactly!

To be honest I was following it since it was the Nintendo Revolution and thought tehre would be a virtual helmet.

I'm still waiting on that Zelda GCN demo from Spaceworld 2001 a while back.

Are you serious!

Why don't you believe the non-entry-level model is the most popular?

Lol, I'm having tears coming out of my eyes right now!

No, I think he means that we dont' know that 32 is two times 16. I could be wrong of course...

I think it was just a bit of snark aimed at their pointing out that 32 is 2 * 16.

Exactly!

1) as for relevance, how could the marketing strategies of large premium-product companies have anything to do with the discussion of apples marketing strategy?

2) my primary point was to counter others' assertions that scarcity value doesn't exist or that it is a ridiculous idea, I felt that linking to 3rd party, reputable sources to the contrary would be enough, apparently not.

3) it is completely possible that apple has no idea of these marketing strategies (which are primarily used by premium brands) and just happened onto them because of their supply problems

On another note; you don't make the most money by selling the most units, you make the most money by maximizing volume and margin. Not by volume alone.
And one( of many) of the strategies used to increase margins and ATP is scarcity value

What does it benefit Apple to create scarcity when they are selling every single phone they make at a premium price?

People having to wait 21 days for a new phone. What is the strategic advantage in that? At that point they run the risk of a significant number skipping the iPhone and buying a phone they can have today.

People wait for stuff all the time. I don't think that really affects anything. The 4S was the first phone I had waited a while for, but there was no way I was going to cancel my order (lol, check out my posts on the ATT) and it made me even more anxious for it.

Actually, the CEO of Gamestop accussed Nintendo of doing this, so the idea exists. One advantage is keeping investors happy. Investors haven't been the kindest to Apple. Even when they exceed their sales goals, the stocks are undervalued. Some companies (note: I didn't say Apple is, as I don't have the direct evidence to that) do this. That way, they be valued pretty high for other quarters instead of just one.

For those that don't believe the idea exists, ... GameStop COO Dan DeMatteo accused Nintendo of purposely holding back stock.


This does not make a company evil, but it can help. Even if they lost some potential customers, Apple does have a pretty good buyer loyalty.

We have a winner...

The above is the stupidest post of the year!

Planned shortage? Do you really believe the crap you write? The YOY sales increase numbers don't support your troll theory.

I hope you pharmaceutical companies do this all the time😳

If this were true Apple would need to explain this to its board of directors and major share holders. I seriously doubt they would agree to people purposefully waiting 21 days for a phone as a sound business strategy.



You are making an Apples to Oranges comparison. No one questioned the supply of Wii's in its first months on the market. People began to question it when Wii shortages continued after two years on the market.

Over the past three years, iPhone shortages have continued for quite obvious reasons through the end of the year holidays. Supply/demand generally level off into the early part of the next year.


Why would investors be happy about Apple not meeting the demand of their hottest selling product?

Your logic really does not make sense.

You pull out a rare instance of a specific situation. Where does Ninitendo ever really confess that they actually artificially constrained supply of the Wii?



This still doesn't mean it is physically possible to build enough to meet demand. Apple sold and delivered 4 million iPhone's in the first week of sales. Clearly they ramped up production and still were unable to fully meet demand.


These are mobile phones. Not everyone can buy one at the same time.


That had nothing to do with Apple artificially constraining supply of its products.

Your latest posts make more sense than all your earlier ones combined...

Thanks for contributing to the discussion!

Lol, happy to be here!

You and others are trying to twist the point, or perhaps you really just don't understand. I'll give you the benefit of the doubt. It's the perception that a desired product is in short supply that marketing departments are aiming for. An imagined shortage pushed in stories such as this for instance. If there truly isn't any product available for purchase, then the marketing can't work.

There is no real shortage of 4S stock. Apple uses the idea that their product is in such short supply as an aide in maintaining their premium pricing. As one example, nearly every comment on this site regarding stated on-line shipping times of weeks out have said their product actually shipped in a day or two. Apple benefits monetarily if they can convince consumers that every available product is being snatched up as soon as it hits the store.

Scarcity value. Try looking it up.

Here is a good description:


What Can Apple Teach Us About Branding?

Another month, another successful product release for Apple. As youve surely heard, Apple released their iPad 2 earlier this month amidst great fanfare. Sales have been brisk, and are expected to remain strong many months into the future. Heres a question for you: how many other companies can grab instant media attention simply by announcing the release of a new product? Do Toshiba users breathlessly search the blogosphere for hints related to next years laptop model? How many people line up outside the Sprint store for the release of the latest BlackBerry smartphone? Clearly Apple is doing something that very few contemporaries can do. This success hasnt happened by accidentits a result of a deliberate branding and marketing strategy. What can each of us learn from Apple and apply to our personal branding efforts? Read on

1)\tScarcity = value. Have you ever wondered why Apple always seems to run out of products after a new release? Surely the company that revolutionized the smartphone can figure out how many iPhones are expected to sell in their opening weekendand can handle the logistics required to ensure that their stores wont run out of stock. Youre right, of course. Apple could easily overstock their stores to ensure that everyone who wants a product can get one. But by deliberately running out of stock, Apple is able to create a perception of scarcity and value.

2)\tNot for everyone. Whether its pricing strategies or the decision to restrict iPhone usage to the AT&T network for several years, Apple sometimes seems determined NOT to sell their products to everyone. Thats counterintuitive, right? Why would any business limit their sales? The answer is that Apple wants their products to be seen as exclusive and valuable. Excluding certain market segments makes it clear that Apple products arent for just anyoneand that perception is in large part responsible for the frenzy that accompanies each product release.

3)\tFocused on adding value. Watch any Apple commercial and youll notice a themeApple doesnt market their products by listing all of their features. Instead, Apple shows customers how their products can improve their lives. The iconic iPod commercials are a classic examplerather than talking about memory space, or sound quality, or the intuitive menu design, Apple emphasized how pleasant it was to be able to listen to your music at the gym, or on the bus, or when out for a jog. The focus isnt on what their products can dothe focus is on how they add value to the lives of their customers.

You may not be selling a product or service as innovative as the iPad, but you can take these lessons and apply them to your brand. Create the perception of scarcity. Dont offer your services or products to just anyone for any pricetreat them as valuable commodities. And above all, focus on adding value to the lives of each of your clients or customers. You may never sell millions of products in a single weekend, but you can expect to see an increase in demand as your brand becomes more exclusive and more valuable.

Whoa, did Linkgx1's account get nuked from orbit? I can see a lot of quotes but no actual posts.