But the way I read the article it says that Apple is paying a premium for the shipping of their goods plus DHL customers saw their rates raised by 20%. Why should the regular DHL customers pay more if DHL is already making a premium on Apple's shipments? Sounds like socialistic shipping to me.
Apple paid for the extra capacity, not others, so if the others want to get in on some of the space Apple could use they'd have to pay more,
Or more likely, there is additional space but that space comes at a premium because it was procured at a premium. They might be factoring in the cost of others into what they have to charge Apple so they can still make themselves look as attractive as possible even when needing to charge more to get more equipment and personal.
How do they know these shipping rates weren't affected by skyrocketing fuel costs? This seems quite speculative even if they called someone at DHL who may not be authorized to comment.
I think it's likely that if Apple it hiring out dedicated space and requesting more shipments that the rates did go up but fuel is also concern.
PS: One day when you buy your iPad you'll be charged a fuel fee at the counter.
But the way I read the article it says that Apple is paying a premium for the shipping of their goods plus DHL customers saw their rates raised by 20%. Why should the regular DHL customers pay more if DHL is already making a premium on Apple's shipments? Sounds like socialistic shipping to me.
Let me make an analogy. Let's say you are a printer and you scored a big job that tied up your presses for a month and you are being paid a premium for it. When one of your regular customers comes in and has a rush job, you don't stop the presses. You instead take the job to one of your friendly competitors and farm it out at retail price. You can then either eat the additional cost or pass the expense on to your customer.
If you are up front with the customer about the reason for the increase and they decide to do the job anyway instead of waiting for the huge job to finish up, it is their decision. They could just as easily go directly to that friendly competitor and sign up for a new account themselves or they could just let you handle it for them.
Or it has a touchscreen. It's very doubtful it will be available on announcement day.
There isn't any hard info one way or the other but I would argue that "very doubtful" goes too far.
Apple products have been available on the day of release/announcement before, they could be again. I see nothing to indicate this is an unusual or weird expectation to have.
This is really a story about how Apple is doing what is right by the customer to rush product to Apple Stores instead of putting product on a month long boat trip.
Shipping rates around the holidays are more stable because the shippers build their infrastructure-hire more temp employees etc., this is a different situation than a mid year bump, plus outfitting the planes to carry wheat back to china is difficult.
This is really a story about how Apple is doing what is right by the customer to rush product to Apple Stores instead of putting product on a month long boat trip.
Part of that is the efficiencies of JIT. Putting 50 million iPads on one ship is also a larger risk. With JIT there are no warehousing costs and less chance of theft. Also it affords them the opportunity of making small adjustments to the assembly line such as ramping up or down certain models as sales trends develop over the first few weeks or if there is an unfortunate issue that needs amending immediately.
Part of that is the efficiencies of JIT. Putting 50 million iPads on one ship is also a larger risk. With JIT there are no warehousing costs and less chance of theft. Also it affords them the opportunity of making small adjustments to the assembly line such as ramping up or down certain models as sales trends develop over the first few weeks or if there is an unfortunate issue that needs amending immediately.
Add to that cash flow -- payments == 2 days, rather than 1 month...
And the possibility that the Somali Pirates got my iPad
There isn't any hard info one way or the other but I would argue that "very doubtful" goes too far.
Apple products have been available on the day of release/announcement before, they could be again. I see nothing to indicate this is an unusual or weird expectation to have.
I agree.
This could be Tim Cook's personal stamp... products available on the day of announcement.
This could be Tim Cook's personal stamp... products available on the day of announcement.
A 'problem' I see with making it available on the day of the announcement is that there won't be time for hype to build up and people to generate massive lines. Though the lines are problematic, they do generate headlines in newspapers everywhere, drawing more attention to the product and brand (free advertising!) and generating even more hype (perpetual hype machine) and hopefully driving more sales. Maybe they won't be able to catch up with the demand for a long time again so they don't need the hype, but it also gives them bragging numbers like "10 million devices sold on the first day".
A 'problem' I see with making it available on the day of the announcement is that there won't be time for hype to build up and people to generate massive lines. Though the lines are problematic, they do generate headlines in newspapers everywhere, drawing more attention to the product and brand (free advertising!) and generating even more hype (perpetual hype machine) and hopefully driving more sales. Maybe they won't be able to catch up with the demand for a long time again so they don't need the hype, but it also gives them bragging numbers like "10 million devices sold on the first day".
I think the biggest issue with same day sales of this product is that you'd have to deliver to stores the day before. As soon as you get outside their guarded warehouse for store delivers you are limit your control over the product. From China to the US it's very large shipments are surely guarded but from store to store that security drops off considerably.
Based on the iPhone 4S launch and iPad HD news I would expect pre-orders on Friday, the 9th, deliveries starting the following Wednesday, the 14th, even though are scheduled for the following Friday, the 16th, and in store sales starting on the 16th.
PS: The products that did launch the same day had less mindshare and unit sales.
Let me make an analogy. Let's say you are a printer and you scored a big job that tied up your presses for a month and you are being paid a premium for it. When one of your regular customers comes in and has a rush job, you don't stop the presses. You instead take the job to one of your friendly competitors and farm it out at retail price. You can then either eat the additional cost or pass the expense on to your customer.
If you are up front with the customer about the reason for the increase and they decide to do the job anyway instead of waiting for the huge job to finish up, it is their decision. They could just as easily go directly to that friendly competitor and sign up for a new account themselves or they could just let you handle it for them.
That's a good analogy, thanks, but I feel that is a little short-sighted move, business wise. I risk losing a customer if he knows the reason why I'm charging him more than usual is because I'm putting all of my "Apples" in one basket for a month, which prevents me from servicing my usual customers. It's like I'm punishing my regular customers just because I got a mother lode order from a new customer. At the least I'm only pissing them off by charging them more this one time but they're still getting their job and I can only hope to retain that customer. At the most I'll lose that customer for good. Does what I'm saying make sense or am I missing something?
That's why I said earlier that if DHL doesn't have the current plane capacity to make this special shipment for Apple, why wouldn't they just lease or charter extra planes for the Apple shipments, since they ARE getting a premium from Apple, and then it wouldn't disrupt or affect their normal/regular business customers. Obviously I'm a printer and don't understand how the shipping biz works.
I don't understand why shipping rates would increase because Apple has taken capacity away from DSL. Why wouldn't DSL charter/lease special planes just for Apple's shipments if they don't have enough available? When FedEx or UPS has increased demand around the holidays they don't raise their rates because they need more capacity, they just pull additional planes out of the hangars and blow the dust off or increase flight frequency. It's the nature of the shipping beast, so to speak.
You can't just "charter" or "lease" capacity without incurring rising costs to your own price. Overtime, employee's, rentals, etc. all make brief moments in time like these more expensive. If it didn't work this way, everyone would own a freight company. Companies have to get freight capacity from smaller outfits and they may or may not charge more. My guess is they are not as efficient as UPS and FedEx.
The article is just stating since Apple has taken a large chunk of capacity the price of shipping in general has risen in the near term. Prices will stabilize or UPS, FedEx, DHL, and others will expand thus decreasing the price sooner or later.
Comments
But the way I read the article it says that Apple is paying a premium for the shipping of their goods plus DHL customers saw their rates raised by 20%. Why should the regular DHL customers pay more if DHL is already making a premium on Apple's shipments? Sounds like socialistic shipping to me.
Apple paid for the extra capacity, not others, so if the others want to get in on some of the space Apple could use they'd have to pay more,
Or more likely, there is additional space but that space comes at a premium because it was procured at a premium. They might be factoring in the cost of others into what they have to charge Apple so they can still make themselves look as attractive as possible even when needing to charge more to get more equipment and personal.
How do they know these shipping rates weren't affected by skyrocketing fuel costs? This seems quite speculative even if they called someone at DHL who may not be authorized to comment.
I think it's likely that if Apple it hiring out dedicated space and requesting more shipments that the rates did go up but fuel is also concern.
PS: One day when you buy your iPad you'll be charged a fuel fee at the counter.
It sounds like you don't know what socialism is. Or capitalism.
It was a joke, lighten up.
It does seem like they will be available for sale on the 7th. No pre-order period then? Tim Cook showing off his organisational skills.
Could be, my thoughts exactly.
J.
But the way I read the article it says that Apple is paying a premium for the shipping of their goods plus DHL customers saw their rates raised by 20%. Why should the regular DHL customers pay more if DHL is already making a premium on Apple's shipments? Sounds like socialistic shipping to me.
Let me make an analogy. Let's say you are a printer and you scored a big job that tied up your presses for a month and you are being paid a premium for it. When one of your regular customers comes in and has a rush job, you don't stop the presses. You instead take the job to one of your friendly competitors and farm it out at retail price. You can then either eat the additional cost or pass the expense on to your customer.
If you are up front with the customer about the reason for the increase and they decide to do the job anyway instead of waiting for the huge job to finish up, it is their decision. They could just as easily go directly to that friendly competitor and sign up for a new account themselves or they could just let you handle it for them.
Or it has a touchscreen. It's very doubtful it will be available on announcement day.
There isn't any hard info one way or the other but I would argue that "very doubtful" goes too far.
Apple products have been available on the day of release/announcement before, they could be again. I see nothing to indicate this is an unusual or weird expectation to have.
Rub your funny bones.
This is really a story about how Apple is doing what is right by the customer to rush product to Apple Stores instead of putting product on a month long boat trip.
Part of that is the efficiencies of JIT. Putting 50 million iPads on one ship is also a larger risk. With JIT there are no warehousing costs and less chance of theft. Also it affords them the opportunity of making small adjustments to the assembly line such as ramping up or down certain models as sales trends develop over the first few weeks or if there is an unfortunate issue that needs amending immediately.
Skip
Damn, how many can they get on one of these planes any ways? Safe bet it's more then a dozen
Skip
Certainly not as many as a series of shipping containers on a large boat, but I believe time is of the essence in this case.
the words "We have something you really have to see. And touch. " are important here. iPad 3 will be unveiled and available at launch on Wednesday.
This is exactly what I've been thinking (and hoping). ...and touch, meaning, you can get one in your hands immediately.
Part of that is the efficiencies of JIT. Putting 50 million iPads on one ship is also a larger risk. With JIT there are no warehousing costs and less chance of theft. Also it affords them the opportunity of making small adjustments to the assembly line such as ramping up or down certain models as sales trends develop over the first few weeks or if there is an unfortunate issue that needs amending immediately.
Add to that cash flow -- payments == 2 days, rather than 1 month...
And the possibility that the Somali Pirates got my iPad
There isn't any hard info one way or the other but I would argue that "very doubtful" goes too far.
Apple products have been available on the day of release/announcement before, they could be again. I see nothing to indicate this is an unusual or weird expectation to have.
I agree.
This could be Tim Cook's personal stamp... products available on the day of announcement.
I agree.
This could be Tim Cook's personal stamp... products available on the day of announcement.
A 'problem' I see with making it available on the day of the announcement is that there won't be time for hype to build up and people to generate massive lines. Though the lines are problematic, they do generate headlines in newspapers everywhere, drawing more attention to the product and brand (free advertising!) and generating even more hype (perpetual hype machine) and hopefully driving more sales. Maybe they won't be able to catch up with the demand for a long time again so they don't need the hype, but it also gives them bragging numbers like "10 million devices sold on the first day".
A 'problem' I see with making it available on the day of the announcement is that there won't be time for hype to build up and people to generate massive lines. Though the lines are problematic, they do generate headlines in newspapers everywhere, drawing more attention to the product and brand (free advertising!) and generating even more hype (perpetual hype machine) and hopefully driving more sales. Maybe they won't be able to catch up with the demand for a long time again so they don't need the hype, but it also gives them bragging numbers like "10 million devices sold on the first day".
I think the biggest issue with same day sales of this product is that you'd have to deliver to stores the day before. As soon as you get outside their guarded warehouse for store delivers you are limit your control over the product. From China to the US it's very large shipments are surely guarded but from store to store that security drops off considerably.
Based on the iPhone 4S launch and iPad HD news I would expect pre-orders on Friday, the 9th, deliveries starting the following Wednesday, the 14th, even though are scheduled for the following Friday, the 16th, and in store sales starting on the 16th.
PS: The products that did launch the same day had less mindshare and unit sales.
Let me make an analogy. Let's say you are a printer and you scored a big job that tied up your presses for a month and you are being paid a premium for it. When one of your regular customers comes in and has a rush job, you don't stop the presses. You instead take the job to one of your friendly competitors and farm it out at retail price. You can then either eat the additional cost or pass the expense on to your customer.
If you are up front with the customer about the reason for the increase and they decide to do the job anyway instead of waiting for the huge job to finish up, it is their decision. They could just as easily go directly to that friendly competitor and sign up for a new account themselves or they could just let you handle it for them.
That's a good analogy, thanks, but I feel that is a little short-sighted move, business wise. I risk losing a customer if he knows the reason why I'm charging him more than usual is because I'm putting all of my "Apples" in one basket for a month, which prevents me from servicing my usual customers. It's like I'm punishing my regular customers just because I got a mother lode order from a new customer. At the least I'm only pissing them off by charging them more this one time but they're still getting their job and I can only hope to retain that customer. At the most I'll lose that customer for good. Does what I'm saying make sense or am I missing something?
That's why I said earlier that if DHL doesn't have the current plane capacity to make this special shipment for Apple, why wouldn't they just lease or charter extra planes for the Apple shipments, since they ARE getting a premium from Apple, and then it wouldn't disrupt or affect their normal/regular business customers. Obviously I'm a printer and don't understand how the shipping biz works.
I don't understand why shipping rates would increase because Apple has taken capacity away from DSL. Why wouldn't DSL charter/lease special planes just for Apple's shipments if they don't have enough available? When FedEx or UPS has increased demand around the holidays they don't raise their rates because they need more capacity, they just pull additional planes out of the hangars and blow the dust off or increase flight frequency. It's the nature of the shipping beast, so to speak.
You can't just "charter" or "lease" capacity without incurring rising costs to your own price. Overtime, employee's, rentals, etc. all make brief moments in time like these more expensive. If it didn't work this way, everyone would own a freight company. Companies have to get freight capacity from smaller outfits and they may or may not charge more. My guess is they are not as efficient as UPS and FedEx.
The article is just stating since Apple has taken a large chunk of capacity the price of shipping in general has risen in the near term. Prices will stabilize or UPS, FedEx, DHL, and others will expand thus decreasing the price sooner or later.