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...
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.
Quote:
Originally Posted by jvanleuvan
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.
Evidence from every recent product launch would indicate that some of this "shortage" is planned, contributing to the scarcity value of Apple products. It's beyond a reasonable belief to think that one of the best product-management companies in the world would always run out of new products with days of their release. No, this isn't evidence that Apple is selling every device it can possible make. It's chosen to use scarcity as a marketing tactic. Smart too, since potential buyers may be willing to pay a bit more than they otherwise might, believing if they don't buy it now they may not find it later.
Evidence from every recent product launch would indicate that some of this "shortage" is planned, contributing to the scarcity value of Apple products. It's beyond a reasonable belief to think that one of the best product-management companies in the world would always run out of new products with days of their release. No, this isn't evidence that Apple is selling every device it can possible make. It's chosen to use scarcity as a marketing tactic. Smart too, since potential buyers may be willing to pay a bit more than they otherwise might, believing if they don't buy it now they may not find it later.
Planned shortage? Do you really believe the crap you write? The YOY sales increase numbers don't support your troll theory.
Yeah, brilliant strategy to not sell a product and potentially lose a customer to a competitor¡ Fucking brilliant!
Let's examine what you're saying. You're saying that "it's beyond a reasonable belief" that 4 million smartphones being sold in a single weekend could possibly be all the supply that they had made over the ramp up for a new product launch. You're really fucking saying this?
I hope you pharmaceutical companies do this all the time😳
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.
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.
Quote:
Actually, the CEO of Gamestop accussed Nintendo of doing this, so the idea exists.
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.
Quote:
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.
Why would investors be happy about Apple not meeting the demand of their hottest selling product?
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.
Umm....This has already happened. Plenty of people still waiting on the 4S (at least on ATT). People have waited longer on the Wii. People will still buy stuff they want, so it's not a negative.
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.
But I was asked
Quote:
Successful ones? Cite some examples.
and I did. But don't you think that a company that knows how successful their products are would be able to meet demand for all people? Apple knew they would be on more carriers.
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.
But that's why you always here negative things a few months after the iPhone or iPad release then stocks will generally go down.
Why would investors be happy about Apple not meeting the demand of their hottest selling product?
Not happy about that, but happy about continued performance. Think of it this way. Lets' say that you sell 20 million units of an item. Would you rather sell all of that in one month/quarter or over the course of a year? You can sell it all at one time, but it will be pretty quite the rest of the year.
This happens a lot with video games. A big game like Call of Duty or Gears of War can sell millions in one day, but the rest of the year those numbers significantly drop.
Wasn't there a thread a while back that talked about how shareholders were still disappointed witih Apple, even though they EXCEEDED expectations?
Your logic really does not make sense.
Again, the CEO of Gamestop refered to the technique, so it's not like it doesn't exist. I didn't say they are just using it, but no one but Apple knows if they are or not.
But I was asked. Successful ones? Cite some examples.
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?
Quote:
and I did. But don't you think that a company that knows how successful their products are would be able to meet demand for all people? Apple knew they would be on more carriers.
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.
Quote:
Not happy about that, but happy about continued performance. Think of it this way. Lets' say that you sell 20 million units of an item. Would you rather sell all of that in one month/quarter or over the course of a year? You can sell it all at one time, but it will be pretty quite the rest of the year.
These are mobile phones. Not everyone can buy one at the same time.
Quote:
Wasn't there a thread a while back that talked about how shareholders were still disappointed witih Apple, even though they EXCEEDED expectations?
That had nothing to do with Apple artificially constraining supply of its products.
Planned shortage? Do you really believe the crap you write? The YOY sales increase numbers don't support your troll theory.
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.
Another month, another successful product release for Apple. As you?ve 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. Here?s 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 year?s 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 hasn?t happened by accident?it?s 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 weekend?and can handle the logistics required to ensure that their stores won?t run out of stock. You?re 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 it?s 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. That?s 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 aren?t for just anyone?and 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 you?ll notice a theme?Apple doesn?t 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 example?rather 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 isn?t on what their products can do?the 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. Don?t offer your services or products to just anyone for any price?treat 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.
Yeah. Global ignore feature. He was probably still posting and didn't realize he no one but mods can see his posts. You can also tell when it happens by the page listing artifact showing a new page you access as we get closer to a new page. [edit: You can mouseover the Next Page button to see the total number of posts in the thread.]
I don't think the kid realized what an obnoxious ass he was being.
Comments
Are you serious!
Lol, I'm having tears coming out of my eyes right now!
Why don't you believe the non-entry-level model is the most popular?
No, I think he means that we dont' know that 32 is two times 16. I could be wrong of course...
Why don't you believe the non-entry-level model is the most popular?
I think it was just a bit of snark aimed at their pointing out that 32 is 2 * 16.
To be honest I was following it since it was the Nintendo Revolution and thought tehre would be a virtual helmet.
Exactly!
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...
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
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.
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.
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.
Evidence from every recent product launch would indicate that some of this "shortage" is planned, contributing to the scarcity value of Apple products. It's beyond a reasonable belief to think that one of the best product-management companies in the world would always run out of new products with days of their release. No, this isn't evidence that Apple is selling every device it can possible make. It's chosen to use scarcity as a marketing tactic. Smart too, since potential buyers may be willing to pay a bit more than they otherwise might, believing if they don't buy it now they may not find it later.
We have a winner...
The above is the stupidest post of the year!
Evidence from every recent product launch would indicate that some of this "shortage" is planned, contributing to the scarcity value of Apple products. It's beyond a reasonable belief to think that one of the best product-management companies in the world would always run out of new products with days of their release. No, this isn't evidence that Apple is selling every device it can possible make. It's chosen to use scarcity as a marketing tactic. Smart too, since potential buyers may be willing to pay a bit more than they otherwise might, believing if they don't buy it now they may not find it later.
Planned shortage? Do you really believe the crap you write? The YOY sales increase numbers don't support your troll theory.
Yeah, brilliant strategy to not sell a product and potentially lose a customer to a competitor¡ Fucking brilliant!
Let's examine what you're saying. You're saying that "it's beyond a reasonable belief" that 4 million smartphones being sold in a single weekend could possibly be all the supply that they had made over the ramp up for a new product launch. You're really fucking saying this?
I hope you pharmaceutical companies do this all the time😳
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.
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.
Actually, the CEO of Gamestop accussed Nintendo of doing this, so the idea exists.
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.
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.
Why would investors be happy about Apple not meeting the demand of their hottest selling product?
Your logic really does not make sense.
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.
Umm....This has already happened. Plenty of people still waiting on the 4S (at least on ATT). People have waited longer on the Wii. People will still buy stuff they want, so it's not a negative.
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.
But I was asked
Successful ones? Cite some examples.
and I did. But don't you think that a company that knows how successful their products are would be able to meet demand for all people? Apple knew they would be on more carriers.
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.
But that's why you always here negative things a few months after the iPhone or iPad release then stocks will generally go down.
Why would investors be happy about Apple not meeting the demand of their hottest selling product?
Not happy about that, but happy about continued performance. Think of it this way. Lets' say that you sell 20 million units of an item. Would you rather sell all of that in one month/quarter or over the course of a year? You can sell it all at one time, but it will be pretty quite the rest of the year.
This happens a lot with video games. A big game like Call of Duty or Gears of War can sell millions in one day, but the rest of the year those numbers significantly drop.
Wasn't there a thread a while back that talked about how shareholders were still disappointed witih Apple, even though they EXCEEDED expectations?
Your logic really does not make sense.
Again, the CEO of Gamestop refered to the technique, so it's not like it doesn't exist. I didn't say they are just using it, but no one but Apple knows if they are or not.
But I was asked. Successful ones? Cite some examples.
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?
and I did. But don't you think that a company that knows how successful their products are would be able to meet demand for all people? Apple knew they would be on more carriers.
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.
Not happy about that, but happy about continued performance. Think of it this way. Lets' say that you sell 20 million units of an item. Would you rather sell all of that in one month/quarter or over the course of a year? You can sell it all at one time, but it will be pretty quite the rest of the year.
These are mobile phones. Not everyone can buy one at the same time.
Wasn't there a thread a while back that talked about how shareholders were still disappointed witih Apple, even though they EXCEEDED expectations?
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!
Your latest posts make more sense than all your earlier ones combined...
Thanks for contributing to the discussion!
Lol, happy to be here!
Planned shortage? Do you really believe the crap you write? The YOY sales increase numbers don't support your troll theory.
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.
What Can Apple Teach Us About Branding?
Another month, another successful product release for Apple. As you?ve 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. Here?s 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 year?s 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 hasn?t happened by accident?it?s 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 weekend?and can handle the logistics required to ensure that their stores won?t run out of stock. You?re 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 it?s 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. That?s 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 aren?t for just anyone?and 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 you?ll notice a theme?Apple doesn?t 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 example?rather 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 isn?t on what their products can do?the 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. Don?t offer your services or products to just anyone for any price?treat 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.
Yeah. Global ignore feature. He was probably still posting and didn't realize he no one but mods can see his posts. You can also tell when it happens by the page listing artifact showing a new page you access as we get closer to a new page. [edit: You can mouseover the Next Page button to see the total number of posts in the thread.]
I don't think the kid realized what an obnoxious ass he was being.