Tight iPad supply has Apple turning down volume orders for businesses

Posted:
in Current Mac Hardware edited January 2014
Business customers who preorder the iPad are also limited to two per person, suggesting Apple is facing a tight supply for the coming April 3 launch date.



Apple sales representatives confirmed Friday morning that initial orders for both businesses and consumers are limited to two per person. The company has begun accepting preorders for the hardware's debut, just over three weeks away.



In addition, AppleInsider has received word that the number of iPads shipped to each retail store location will be based solely on the number reserved for pickup at that store. In other words, fewer in-store reservations will mean a lighter stock of hardware.



People familiar with the matter said store employees have been told to encourage customers to preorder to ensure that their retail location will receive a higher number of iPads for the April 3 launch. Allegedly there will be enough stock at each store to fulfill preorders, but if a store doesn't have a large number of devices reserved, there will not be many left over for those who did not preorder.



These details suggest Apple is facing a tight supply prior to the April 3 launch of the iPad. However, it's also possible Apple could be limiting orders to create artificial demand, though there is no evidence to support this scenario.



Weeks ago, a handful of reports of manufacturing constraints suggested initial supply of the iPad could be limited. Analyst Peter misek with Canaccord Adams said checks with overseas suppliers suggested an "unspecified production problem" had led to a "manufacturing bottleneck," potentially limiting the number of devices available at launch to 300,000.



Another report, from analyst Vijay Rakesh of Think Equity, said that initial shipment could be even lower, around 200,000, due to "minor delays" in production. His checks with suppliers said any delays were only expected to be temporary, and were not related to the device's glass screen, or any issues in the manufacturing process.



A third report alleged that suppliers have had no issues in the manufacturing of the iPad, and expect Apple to ship between 600,000 and 700,000 devices at launch. That report claimed Apple would have the capacity to ship another 1 million iPads by the end of April.







Though the Wi-Fi-only iPad debuts in the U.S. on April 3, the product will not be available in other countries until later that month. In addition, the 3G-capable model will launch stateside in late April.



Analysts on Wall Street have high hopes for the iPad, which they expect to be a multi-million seller in its first year. Predictions for the device range from as low as 1 million first-year shipments to as high as 7 million.
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Comments

  • Reply 1 of 80
    Uh-oh, some people are going to be "upset".
  • Reply 2 of 80
    finetunesfinetunes Posts: 2,065member
    Bummer
  • Reply 3 of 80
    So the supply is either limited or it isn't.



    Wonderful and insightful news.



    Perhaps they (Apple) are limiting the quantities to avoid people buying multiple iPads and then reselling for a premium price as happened with PS/3 and Wii consoles?
  • Reply 4 of 80
    solipsismsolipsism Posts: 25,726member
    Now this is like running an exclusive night club and not even letting in Lady Gaga or P Diddy.
  • Reply 5 of 80
    igeniusigenius Posts: 1,240member
    Quote:
    Originally Posted by solipsism View Post


    Now this is like running an exclusive night club and not even letting in Lady Gaga or P Diddy.



    Good one!
  • Reply 6 of 80
    rot'napplerot'napple Posts: 1,839member
    200,000, 600,000, 300,000, 700,000, but you're limited to two... You too businesses... Hardware delay rumors, software delays...



    For Pete sake's does anyone out there know what the heck is going on? "And the truth shall set you free!"
  • Reply 7 of 80
    Quote:
    Originally Posted by solipsism View Post


    Now this is like running an exclusive night club and not even letting in Lady Gaga or P Diddy.



    Well the Apple store isn't exactly crashing like some predicted. I don't believe pre orders are going to be all that high, I think people are going to want to see this device first before buying one.



    Even at the lowest cost of 500.00 with a few small accessories going to bring this to 600.00 with tax. In this economy large groups of consumers aren't going to give out a min of 600.00 without at least giving this device a try or waiting until some real consumer reviews come along. The lowest 3G model someone is looking at close to 700.00 before they get out the door.
  • Reply 8 of 80
    igeniusigenius Posts: 1,240member
    Quote:
    Originally Posted by extremeskater View Post


    Even at the lowest cost of 500.00 with a few small accessories going to bring this to 600.00 with tax. In this economy large groups of consumers aren't going to give out a min of 600.00 without at least giving this device a try or waiting until some real consumer reviews come along. The lowest 3G model someone is looking at close to 700.00 before they get out the door.



    But Apple has a built-in cult of followers who will buy sight unseen. It would not surprise me if they numbered upwards of a half-million, or even more.



    They are in an enviable position in that regard.
  • Reply 9 of 80
    paxmanpaxman Posts: 4,575member
    At this point its a win win for Apple. Whether the supply really is short or it is artificially short the perception will be that the iPad is in high demand. Even if it is true that there is a shortage this will be of little consequence as long as it is not an ongoing situation. It is hard to tell whether this is a 'managed' situation or not.
  • Reply 10 of 80
    cylackcylack Posts: 26member
    Can someone please explain why this person isn't banned yet? EVERY single one of his posts is something negative about Apple. He offers nothing constructive. He is an obvious troll sitting unemployed in his parents' basement.



    This is an Apple fan site. Go post on Pauly Thurrot's site if you want to slobber over Winblows junk and hangout with like minded dimwits like yourself there.







    Quote:
    Originally Posted by iGenius View Post


    But Apple has a built-in cult of followers who will buy sight unseen. It would not surprise me if they numbered upwards of a half-million, or even more.



    They are in an enviable position in that regard.



  • Reply 11 of 80
    quadra 610quadra 610 Posts: 6,741member
    Quote:
    Originally Posted by extremeskater View Post


    Well the Apple store isn't exactly crashing like some predicted. I don't believe pre orders are going to be all that high, I think people are going to want to see this device first before buying one.



    Even at the lowest cost of 500.00 with a few small accessories going to bring this to 600.00 with tax. In this economy large groups of consumers aren't going to give out a min of 600.00 without at least giving this device a try or waiting until some real consumer reviews come along. The lowest 3G model someone is looking at close to 700.00 before they get out the door.



    Careful.



    http://www.businessinsider.com/is-ap...an-hour-2010-3



    http://macdailynews.com/index.php/we...omments/24349/
  • Reply 12 of 80
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by cylack View Post


    Can someone please explain why this asshole isn't banned yet? EVERY single one of his posts is something negative about Apple. He offers nothing constructive. He is an obvious troll sitting unemployed in his parents' basement.



    He dickhead this is an Apple fan site. Go post on Pauly Thurrot's site if you want to slobber over Winblows junk and hangout with like minded dimwits like yourself there.



    Problem is, as obnoxious as you seem to find him, he doesn't break the forum rules and make personal attacks or resort to name calling. You are more likely to get banned for your post.
  • Reply 13 of 80
    finetunesfinetunes Posts: 2,065member
    Quote:
    Originally Posted by cylack View Post


    Can someone please explain why this asshole isn't banned yet? EVERY single one of his posts is something negative about Apple. He offers nothing constructive. He is an obvious troll sitting unemployed in his parents' basement.



    He dickhead this is an Apple fan site. Go post on Pauly Thurrot's site if you want to slobber over Winblows junk and hangout with like minded dimwits like yourself there.



    Just add the offender to your ignore list and don't give the offender the satisfaction that he/she has p*ssed u off. If you don't know how--go to User CP at the top click, next window you have a column--Under settings and options you will see ignore list--Click, type in the offender's name and save--done--that simple and soo much relief after its done.
  • Reply 14 of 80
    charlitunacharlituna Posts: 7,189member
    companies do this sort of thing all the time. The last iphone was one per customer on release day. Bookstores have limited major titles like Harry Potter and Twilight to one or two per customer for ages.



    It means nothing. It's not a sign of supply shortages or such. This isn't some holy grail device that it's really going to hurt a business that they can't order the 200 units of something they haven't even seen yet. Heck, they are probably better off being limited to two so they can see it before they go all in.



    FUD plain and simple.
  • Reply 15 of 80
    quadra 610quadra 610 Posts: 6,741member
    Quote:
    Originally Posted by mstone View Post


    Problem is, as obnoxious as you seem to find him, he doesn't break the forum rules and make personal attacks or resort to name calling. You are more likely to get banned for your post.



    Have to agree here. Some people are very good at walking the line. If the individual's posts are truly disruptive, the mods will sort things out. Until then, it's all fair. It's all part of the ebb and flow of the conversation or debate.
  • Reply 16 of 80
    rco3rco3 Posts: 76member
    Quote:
    Originally Posted by Quadra 610 View Post


    If the individual's posts are truly disruptive, the mods will sort things out.



    Your assertion is not supported by recent history.



    Please, people, PLEASE stop quoting these guys. It renders the ignore list useless - which is what they want.
  • Reply 17 of 80
    Quote:
    Originally Posted by cylack View Post


    Can someone please explain why this a**hole isn't banned yet? EVERY single one of his posts is something negative about Apple. He offers nothing constructive. He is an obvious troll sitting unemployed in his parents' basement.



    He d**khead this is an Apple fan site. Go post on Pauly Thurrot's site if you want to slobber over Winblows junk and hangout with like minded dimwits like yourself there.



    It kills me to say this but he is right. There are Apple fans that will buy almost anything Apple as soon as it is released. Now, how apple built that loyalty and how many of these fans exist is a whole different story.



    Weather he is unemployed or works at McDonalds remains to be seen but does not change a valid point. Heck, even a broken clock is right twice a day.

    Unless its digital.
  • Reply 18 of 80
    sflocalsflocal Posts: 4,195member
    Quote:
    Originally Posted by ElmCityWeb View Post


    Uh-oh, some people are going to be "upset".



    Yes, certain Apple doomsayers that considered the iPad an epic fail on this forum come to mind.
  • Reply 19 of 80
    MacProMacPro Posts: 17,513member
    Quote:
    Originally Posted by Rot'nApple View Post


    200,000, 600,000, 300,000, 700,000, but you're limited to two... You too businesses... Hardware delay rumors, software delays...



    For Pete sake's does anyone out there know what the heck is going on? "And the truth shall set you free!"



    I got my order confirmation and delivery date already so I'm happy
  • Reply 20 of 80
    igeniusigenius Posts: 1,240member
    Quote:
    Originally Posted by Quadra 610 View Post


    Have to agree here. Some people are very good at walking the line. If the individual's posts are truly disruptive, the mods will sort things out. Until then, it's all fair. It's all part of the ebb and flow of the conversation or debate.



    Thanks. There's a huge difference between posting inconvenient truths and violating forum rules.
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