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Best Buy issues memo warning of iPhone constraints

post #1 of 30
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Best Buy over the weekend became the latest Apple partner to warn staffers of dwindling iPhone supply that could leave some of its stores without product to sell for a few weeks later this month.

In a memo from its corporate division, the Richfield, Minnesota-based specialty electronics retailer told mobile sales employees that the iPhone 3G is now in constraint, noting that inventory of the touch-screen handsets will be light over the coming weeks and that some locations are likely to run out all together.

The advisory is similar to one issued roughly a week ago by Brightpoint, an Australian distributor supplying Vodafone Australia and others in the region with iPhone 3Gs.

"We have just been notified that the following devices are End Of Life and that there is only a few weeks stock available from Brightpoint," the carrier said in reference to the 16GB iPhone 3G. "This is an opportunity to take advantage of these devices whilst they're still available."

Meanwhile, at least one Australian wireless provider just this past weekend is reported to have finalized agreements with Apple to carry its 2009 iPhone offerings. As part of the deal, carrier representatives were asked to sign a non-disclosure agreement and told the new devices would be unveiled next week at Apple's annual developers conference.

Progress made during the ongoing iPhone 3.0 beta test and subsequent tips from those close to the iPhone maker's Apple Care customer support groups suggest it will take roughly three to four weeks following next Monday's introductions before consumers will be able to purchase the new iPhones.

Last year, Apple introduced the iPhone 3G at the start of its 2008 developers conference on June 9th and announced availability would follow on July 11th. During the four weeks in between, supply of original iPhones were close to non-existant.
post #2 of 30
It is getting harder and harder to wait for WWDC. I want to see this thing already!
post #3 of 30
The lack of supply does put a damper on the rumours that the current iPhone 3G will be sold unchanged at $99 subsidized with cheaper plan options. Although, the Oz carrier is only reporting the 16GB model constrained, which makes sense for the rumor as 16GB and 32GB would probably be reserved for the next generation iPhone.

8 days to go.
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post #4 of 30
Quote:
Originally Posted by AppleInsider;As part of the deal, carrier representatives were asked to sign a non-disclosure agreement and told the new devices would be unveiled next week at Apple's annual developers conference.

Progress made during the ongoing iPhone 3.0 beta test and subsequent tips from those close to the iPhone maker's Apple Care customer support groups suggest it will take roughly three to four weeks following next Monday's introductions before consumers will be able to purchase the new iPhones.
[c


[ View this article at AppleInsider.com ][/c]

Nice conformation that we are definetly going to see the new iPhone next Monday, we were expexcting it but still, now we know...

Oh and about Jobs coming back at the end of the month, maybe he will introduce the tablet, he would love to introduce the new iPhone but I'm sure he would much rather introduce a new product like he has in the past!

Anyways can't wait till next Monday, all these rumors "oh it's going to have pled screen and a glowing apple and will blow up like a grenade if you shake it" and then the re
Responses "oh no way that doesn't sound like what apple would do"

I can't wait for the facts!
post #5 of 30
Hey everyone,

I wanna watch the WWDC live June 8th online. Does anyone know where I can see it?
post #6 of 30
Quote:
Originally Posted by Ryan Austin View Post

Hey everyone,

I wanna watch the WWDC live June 8th online. Does anyone know where I can see it?

Most likely there will be no live video broadcast. Apple usually posts the video later in or the following day. This site and others should have live text updates though.
post #7 of 30
I kinda assumed so. That happened with the 3.0 software unveiling. :-(
post #8 of 30
Quote:
Originally Posted by solipsism View Post

The lack of supply does put a damper on the rumours that the current iPhone 3G will be sold unchanged at $99 subsidized with cheaper plan options. Although, the Oz carrier is only reporting the 16GB model constrained, which makes sense for the rumor as 16GB and 32GB would probably be reserved for the next generation iPhone.

Excellent point. As a rule, Apple doesn't retain older models in the line-up to sell them at a lower price than the newer models. One obvious exception is the white MacBook, and some of the speed-bumped Mac models I suppose. That kind of differentiation seems kind of cheesy to me, and I always doubted they'd do it for the iPhone.
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post #9 of 30
Quote:
Originally Posted by Dr Millmoss View Post

Excellent point. As a rule, Apple doesn't retain older models in the line-up to sell them at a lower price than the newer models. One obvious exception is the white MacBook, and some of the speed-bumped Mac models I suppose. That kind of differentiation seems kind of cheesy to me, and I always doubted they'd do it for the iPhone.

I would imagine they are clearing out ALL inventory, even if they plan on selling an 8gb model. I don't see them selling a product then telling people they need to perform a major software update when they get home. They'll only sell products which are current and up to date right out of the box.
post #10 of 30
Quote:
Originally Posted by GTL215 View Post

I would imagine they are clearing out ALL inventory, even if they plan on selling an 8gb model. I don't see them selling a product then telling people they need to perform a major software update when they get home. They'll only sell products which are current and up to date right out of the box.

Oh, no. I've bought Macs with the non-current OS installs on them. Apple either includes the upgrade disc in the box or they will ship one for a minimal price (the "up-to-date" program). For a long time, retailers were selling the iPod touch with the 1.x OS on them. So I don't see them clearing out old iPhone inventory for that reason alone.
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post #11 of 30
It's still possible that they will sell the current model for $99. I think their plan is not to ship new units until the launch of the new generation iphone, that way the soon to be $99 3g model will also have os 3.0.
post #12 of 30
Quote:
Originally Posted by Dr Millmoss View Post

Excellent point. As a rule, Apple doesn't retain older models in the line-up to sell them at a lower price than the newer models. One obvious exception is the white MacBook, and some of the speed-bumped Mac models I suppose. That kind of differentiation seems kind of cheesy to me, and I always doubted they'd do it for the iPhone.

+ iPod Shuffle (you can still buy coloured ones with buttons)...
+ Various white iMacs sold as education models over the years
+ Powerbook Titanium 15" sold for months after the 12" and 17" Alu models came out.

it's really not without precedent. Actually what they need to do is clear the stock of those iPhones on the shelf loaded with 2.2.1 software in the box...

The other thing about running dry is that they issue a clear signal to everyone not to buy one now and complain in a week when the latest and greatest model has been announces. Running low on stock of iPhones probably creates suitable desire and hype too.
post #13 of 30
Quote:
Originally Posted by mrtotes View Post

+ iPod Shuffle (you can still buy coloured ones with buttons)...
+ Various white iMacs sold as education models over the years
+ Powerbook Titanium 15" sold for months after the 12" and 17" Alu models came out.

it's really not without precedent. Actually what they need to do is clear the stock of those iPhones on the shelf loaded with 2.2.1 software in the box...

You can't buy the colored shuffle from Apple, so if you find them it must be existing stock. The education models aren't usually available to the general public. I don't remember about the PowerBook Ti situation, but I wasn't saying this was without precedent, just that I see the point made by solipsism.
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post #14 of 30
Quote:
Originally Posted by Dr Millmoss View Post

You can't buy the colored shuffle from Apple, so if you find them it must be existing stock.

http://store.apple.com/us/browse/hom...en?mco=OTQwMjA
They're still for sale, but who knows for how long.
post #15 of 30
Quote:
Originally Posted by Dr Millmoss View Post

You can't buy the colored shuffle from Apple, so if you find them it must be existing stock. The education models aren't usually available to the general public. I don't remember about the PowerBook Ti situation, but I wasn't saying this was without precedent, just that I see the point made by solipsism.


http://store.apple.com/us/browse/hom...y/ipod_shuffle

on the right half way down the page (still available...)

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post #16 of 30
Quote:
Originally Posted by AppleInsider View Post

Meanwhile, at least one Australian wireless provider just this past weekend is reported to have finalized agreements with Apple to carry its 2009 iPhone offerings. As part of the deal, carrier representatives were asked to sign a non-disclosure agreement

"In other news, Apple is quickly reworking current plans for the iPhone with certain Australian providers and forging a deal with competitors."
post #17 of 30
Quote:
Originally Posted by Dr Millmoss View Post

Excellent point. As a rule, Apple doesn't retain older models in the line-up to sell them at a lower price than the newer models. One obvious exception is the white MacBook, and some of the speed-bumped Mac models I suppose. That kind of differentiation seems kind of cheesy to me, and I always doubted they'd do it for the iPhone.

Apple will retain some small percentage of all products it makes past it life cycle. So when some one with a past model need a replacement apple has one to switch it out with.

I guess if certain requirements are met concerning whose fault it is and does owner have extended warranty or pro care card.

Also 2nd gen iphones can be kept for another market.

The ipod classic 120g is still alive I may just buy one just to have.

Whatever happened to the apple speakers ???
Were they good ?
They was 50 bucks more than a similar <sony?> model out at the time.
I will also buy this product.

And why is the apple tv better than buying a mini with avi cords ???

iF THE iTOUCH has a 120 g flash drive would it not be an apple tv at that moment . ??
PEACE

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post #18 of 30
Someone wake me up when iPhone is finally released...
post #19 of 30
Quote:
Originally Posted by mstone View Post

http://store.apple.com/us/browse/hom...y/ipod_shuffle

on the right half way down the page (still available...)

I missed that link, thanks!
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post #20 of 30
Quote:
Originally Posted by Dr Millmoss View Post

Excellent point. As a rule, Apple doesn't retain older models in the line-up to sell them at a lower price than the newer models. One obvious exception is the white MacBook, and some of the speed-bumped Mac models I suppose. That kind of differentiation seems kind of cheesy to me, and I always doubted they'd do it for the iPhone.

Apple also doesn't generally make drastic price cuts after the introduction of a new machine, as they did shortly after the introduction of the iPhone.

Apple typically shifts their middle spec to the bottom and adds a new "best" , thereby bringing added value to the lineup while protecting their price floor.

The iPod model is to do that plus create entirely new form factors to cover the spread.

However, the iPhone is uniquely resistant to "new form factors" in that the UI dominates the device to the point that it literally defines it, and that UI is less amenable to a simple shrink than, say, the click wheel was.

That, plus the fact that the cell phone industry involves carrier subsidies, is insanely price sensitive, and represents a market that Apple has a legitimate shot at taking a much larger chunk of, suggest that all historical models may not be relevant.
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post #21 of 30
Quote:
Originally Posted by brucep View Post

Whatever happened to the apple speakers ???
Were they good ?
They was 50 bucks more than a similar <sony?> model out at the time.
I will also buy this product.

Way too late, you might get lucky and find an old stock, but it's been discontinued for quite some time. It seems like it's been a year or two. I don't know if they were any good. I really never had a chance to use them, but it seemed suspicious that they didn't have tweeters.
post #22 of 30
Very well said, Addabox.

In Australia, price plays very little part of the actual consumer reaction to a product. In fact, if the consumer has to pay anything for a phone, they're quite unhappy, and would rather take a lesser phone that costs nothing on a plan.

This makes price issues somewhat less of a worry here - carriers just completely subsidize everything.

Personally, I disagree with this business model however, for several reasons. First, I'd rather pay a cost at the start to understand the full financial impact of the device. Plan business models mean that a device's pros aren't fully weighed against its cons because you're thinking "who cares, it costs me nothing today" - a stupid mentality that only causes one thing: more spending to get three devices after realizing you didn't get the right phone for you. Second, hiding the price of a device under a plan is really in no one's interests except the carrier. The carrier gets to lock you into a plan that is otherwise open ended and they are guaranteed an overhead. If they don't get it, they approach the debt collectors and get the money anyway.

If I didn't have an iPhone at the current time, I would buy outright to overcome this pathetic situation in the Australian market.
post #23 of 30
Quote:
Originally Posted by JeffDM View Post

Way too late, you might get lucky and find an old stock, but it's been discontinued for quite some time. It seems like it's been a year or two. I don't know if they were any good. I really never had a chance to use them, but it seemed suspicious that they didn't have tweeters.

your joking right ??? i am brucep not jeffdm

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post #24 of 30
Quote:
Originally Posted by addabox View Post

That, plus the fact that the cell phone industry involves carrier subsidies, is insanely price sensitive, and represents a market that Apple has a legitimate shot at taking a much larger chunk of, suggest that all historical models may not be relevant.

Another good point. We shall see soon enough. Place your bets!
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post #25 of 30
Quote:
Originally Posted by brucep View Post

your joking right ??? i am brucep

Sorry about that.
post #26 of 30
"supply of original iPhones were close to non-existant"

Isn't it "existent"?

Damn, lost at work on this PC without my "cmd-ctrl-D"
post #27 of 30
Quote:
Originally Posted by Cubert View Post

"supply of original iPhones were close to non-existant"

Isn't it "existent"?

Damn, lost at work on this PC without my "cmd-ctrl-D"


Hey, that rhymed! I'm a poet and I didn't even know it!
post #28 of 30
Quote:
Originally Posted by addabox View Post

The iPod model is to do that plus create entirely new form factors to cover the spread.

However, the iPhone is uniquely resistant to "new form factors" in that the UI dominates the device to the point that it literally defines it, and that UI is less amenable to a simple shrink than, say, the click wheel was.

That, plus the fact that the cell phone industry involves carrier subsidies, is insanely price sensitive, and represents a market that Apple has a legitimate shot at taking a much larger chunk of, suggest that all historical models may not be relevant.

Is the "spread" now going to be covered by "cellular radio type/data speed," with all other iPhone hardware/software being just about the same? (This assumes that on a low data speed model like EDGE or even UMTS, certain high-capacity data features are disallowed, such as uploading video, or downloading iTunes movies.)

If so, assuming there is a $99 model, will it be an 8GB 2G EDGE model or will it be an 8GB 3G UMTS model (with the 16GB version going for $169)? Will the 2-year AT&T unlimited data plan price for it be set at $15, $20, or $25/mo since certain uploads/downloads are disallowed? Or will AT&T take the dreaded limited data route?

I'm also assuming $199 for the 16GB HSPA 7.2 model and $299 for the 32GB version. Hopefully the 2-year AT&T unlimited data plan price stays at $30/mo. Maybe they could add in 200 SMS/MMS messages to make it a more competitive value (wishful thinking??). (Actually, this pricing issue is why it would be good for the Pre to be competitive.)

And I assume the other 2 SKUs are the TD-SCDMA models (16GB, 32GB) for China only. Big news for AAPL stock.

We'll know in 7 days.
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post #29 of 30
Quote:
Originally Posted by GTL215 View Post

I would imagine they are clearing out ALL inventory, even if they plan on selling an 8gb model.

i thought that interesting that there was no mention of the 8gb. so what they are going to soup up the 16 but not the 8. that doesn't make sense.

[quote}
They'll only sell products which are current and up to date right out of the box.[/QUOTE]

not entirely true. there have been times when the phones in the box were not 100% up to date. no one really minds cause the updates are free. the touch users would be the ones with the issue cause so far they can't do major updates for free.
post #30 of 30
Quote:
Originally Posted by mark2005 View Post

Is the "spread" now going to be covered by "cellular radio type/data speed," with all other iPhone hardware/software being just about the same? (This assumes that on a low data speed model like EDGE or even UMTS, certain high-capacity data features are disallowed, such as uploading video, or downloading iTunes movies.)

If so, assuming there is a $99 model, will it be an 8GB 2G EDGE model or will it be an 8GB 3G UMTS model (with the 16GB version going for $169)? Will the 2-year AT&T unlimited data plan price for it be set at $15, $20, or $25/mo since certain uploads/downloads are disallowed? Or will AT&T take the dreaded limited data route?

I'm also assuming $199 for the 16GB HSPA 7.2 model and $299 for the 32GB version. Hopefully the 2-year AT&T unlimited data plan price stays at $30/mo. Maybe they could add in 200 SMS/MMS messages to make it a more competitive value (wishful thinking??). (Actually, this pricing issue is why it would be good for the Pre to be competitive.)

And I assume the other 2 SKUs are the TD-SCDMA models (16GB, 32GB) for China only. Big news for AAPL stock.

We'll know in 7 days.

My modestly informed guess would be that Apple will sell the current 8GB model for $99, possibly tied to a cheaper AT&T data plan. So the "base"model would be able to run all extent software but forgo the new hardware features such as the magnetometer, video capable camera and larger storage capacities.

I could imagine them putting a faster processor in such a model, since that moves the platform closer to an across the board customer experience that I think they want (since it appears to me the current model just barely manages same). But maybe not, as the iPhone has been a huge success just as it is, and "snappier" is a good reason to spring for the more expensive model.

So the current $199 goes to 16GB storage with whatever new hardware features are in store, and $299 gets you the 32GB model.

As we know, Apple's price points aren't only (or even mostly) based on their costs, but rather a carefully calibrated range with healthy incentives for the up-sell.

Of course, I'm also the guy who thought an "iPhone" would be marketed as an extension of the iPod line, leveraging the enormous good will and name recognition thereof. And of course it's been the opposite: "iPod" is rapidly becoming a subset of the iPhone/Touch platform, with dedicated players seeming ever more trivial. So what do I know?
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