iPad mini shipment times improve to 3-5 days from Online Apple Store

Posted:
in iPad edited January 2014
Despite severe constraints throughout the holiday quarter, supply of Apple's iPad mini is finally catching up with demand as the Online Apple Store is now quoting ship-by dates of 3-5 business days.

Shipment Estimates


The change comes one week after Apple kicked off sales of cellular-enabled versions of the iPad mini in China, a market thought to be a major player in the company's future growth. At the time of launch, availability stood at two weeks for the Chinese market and one week for the U.S.

Supply of the hot-selling 7.9-inch tablet has been constrained since the device went on sale in October, with brisk sales amounting to quick stockouts on Apple's online store. The company announced that the iPad mini sold three million units over its first weekend on sale.

In early December, iPad mini availability improved as quoted Online Apple Store shipment estimates fell to one week for the first time since launch.

Apple CEO Tim Cook said in the company's quarterly earnings conference call in October that he thought the smaller iPad, along with the fourth-gen iPad and iPad 2, would be "extremely attractive" stand-ins for PCs. During Apple's most recent conference call for the first fiscal quarter of 2013, Cook said suppliers were having difficulty meeting high demand, but a balance could be reached by the end of the upcoming quarter.

Comments

  • Reply 1 of 18
    cash907cash907 Posts: 893member


    Or you could just go to bestbuy.com, where they are all in stock and shipping immediately.


    What is up with the Apple Store lately? 3rd party suppliers are doing a better job keeping things in stock than they are.

  • Reply 2 of 18
    galleygalley Posts: 971member
    I bought my 64GB white AT&T mini a few days ago. The local Apple Store was the only one that had any in stock.
  • Reply 3 of 18
    solipsismxsolipsismx Posts: 19,566member
    cash907 wrote: »
    Or you could just go to bestbuy.com, where they are all in stock and shipping immediately.
    What is up with the Apple Store lately? 3rd party suppliers are doing a better job keeping things in stock than they are.

    Best Buy's iPad factories are more productive than Apple's¡

    - or -

    Apple is sending more to 3rd party retailers than they can sell in comparison to the demand they are facing in their own online and B&M stores.
  • Reply 4 of 18

    Quote:

    Originally Posted by Cash907 View Post


    Or you could just go to bestbuy.com, where they are all in stock and shipping immediately.


    What is up with the Apple Store lately? 3rd party suppliers are doing a better job keeping things in stock than they are.



    More and more people are buying at the Applestore ONLY, especially around the world. Intermediates only get on the way and never facilitate anything (especially outside the US).


     


    besides that they have special deals like laser engraving etc, people love that. 

  • Reply 5 of 18
    jragostajragosta Posts: 10,473member
    Oh, NO. Demand is down and Apple's backlog is declining. Apple is doomed.

    Don't worry, if the lead time goes back up, I'll simply use the alternate response:

    Oh, NO. Apple can't keep up with demand. Apple is doomed.

    And if lead time doesn't change, Apple is doomed because they're not improving.
  • Reply 6 of 18
    Eww. Best Buy is the last place I'd go to buy Apple stuff. Even if it's in stock. Avoid at ALL costs.
  • Reply 7 of 18


    Availability is still "two weeks" on the UK Apple store and availability is extremely patchy on the high street. 

  • Reply 8 of 18
    kdarlingkdarling Posts: 1,640member

    Quote:

    Originally Posted by Cash907 View Post


    What is up with the Apple Store lately? 3rd party suppliers are doing a better job keeping things in stock than they are.



     


    Could have been because of the recent earnings call.


     


    Usually Apple likes to keep their own stores stocked first.  


     


    However, when they want to boost sales numbers for publicity, Apple is known to divert limited stock to retailers instead.  (I read about this a couple of years ago in an analyst's report, explaining this type of situation.)


     


    This is because shipments to retailers are counted as sales right away, even if the units haven't arrived there yet, whereas shipments to Apple's own stores are not counted as sales until an end user buys it.


     


    Just a possibility.

  • Reply 9 of 18
    solipsismxsolipsismx Posts: 19,566member
    kdarling wrote: »
    Could have been because of the recent earnings call.

    Usually Apple likes to keep their own stores stocked first.  

    However, when they need to boost sales numbers for publicity, <span style="font-size:13px;line-height:1.231;">Apple is known to divert limited stock to retailers instead.  (I read about this a couple of years ago in an analyst's report, explaining this type of situation.)</span>


    <span style="font-size:13px;line-height:1.231;">This is because shipments to retailers are counted as sales right away, whereas shipments to their own stores are not counted as sales until an end user buys it.</span>

    1) Good point. Selling to 3rd party retailers would help buoy sales.

    2) In Apple's case this seems to be the case since there is no recent history of Apple having to stuff a channel to make numbers look good and, most importantly, Apple's popularity, mindshare and market dominance means they likely don't have to make deals that lesser vendors often do. Bottom line, Apple can say we have x-many units to sell you and the large retailers will likely buy them outright because they know they can move them.
  • Reply 10 of 18
    kdarlingkdarling Posts: 1,640member

    Quote:

    Originally Posted by SolipsismX View Post



    Bottom line, Apple can say we have x-many units to sell you and the large retailers will likely buy them outright because they know they can move them.


     


    Yep, that's true.


     


    Btw, analysts have noticed this phenomenon about once a year, but usually it's done the quarter before a new model comes out... when sales are really slow.   Apple diverts all the oldest model phones to retailers to get the sales numbers up, and to keep from having a glut of them at their own stores when the new model hits.

  • Reply 11 of 18
    solipsismxsolipsismx Posts: 19,566member
    kdarling wrote: »
    Yep, that's true.

    Btw, analysts have noticed this phenomenon about once a year, but usually it's done the quarter before a new model comes out... when sales are really slow.   Apple diverts all the oldest model phones to retailers to get the sales numbers up, and to keep from having a glut of them at their own stores when the new model hits.

    My previous post was the simplified version of trade but as you know the reality is a lot more complex. We know Apple uses Foxconn for their production but it's possible that Apple uses the same facility, lines and people for (say) the iPhone 4 and iPhone 4S production. If you are using one line it makes no sense to switch them out daily so you go in batches. This means that there are times when one SKU is producing at a rate much faster than it can sell while the other isn't being produced at all. Apple will watch their surplus and demand and make changes accordingly.

    This can get more tricky with other products. I assume the iPads and iPhone 5 have their own dedicated lines that do not shut down but it all depends on the setup and what is ultimately deemed the most efficient.



    OT: I wonder if the next Mac Pro will finally get a new aesthetic look. Could they be using friction stir welding to make a case that looks like it was milled from a solid block of aluminum? Seems like something Apple might do.
  • Reply 12 of 18
    cash907cash907 Posts: 893member

    Quote:

    Originally Posted by SolipsismX View Post





    Best Buy's iPad factories are more productive than Apple's¡





    - or -




    Apple is sending more to 3rd party retailers than they can sell in comparison to the demand they are facing in their own online and B&M stores.


     


    But that doesn't make sense. Why would they place higher stocking priority on 3rd party outlets, with their lower profit margin per unit sold, over their own in house stores? Again, Cook is supposed to be this wiz logistics guy, so why can't he keep his own online/b&m stores stocked?

  • Reply 13 of 18
    cash907cash907 Posts: 893member

    Quote:

    Originally Posted by Suddenly Newton View Post



    Eww. Best Buy is the last place I'd go to buy Apple stuff. Even if it's in stock. Avoid at ALL costs.


     


    Why? Their return policy is double that of Apple's, plus you get incentive points for every dollar you spend there, whereas Apple has no buyer loyalty reward program whatsoever. If you have any problems with your Apple purchase, you can still take it to the Genius Bar at any Apple store, regardless of where you purchased it from.

  • Reply 14 of 18
    cash907cash907 Posts: 893member

    Quote:

    Originally Posted by pedromartins View Post


    More and more people are buying at the Applestore ONLY, especially around the world. Intermediates only get on the way and never facilitate anything (especially outside the US).


     


    besides that they have special deals like laser engraving etc, people love that. 



     


    You have sales charts to back this up?

  • Reply 15 of 18
    kdarlingkdarling Posts: 1,640member

    Quote:

    Originally Posted by pedromartins View Post


    More and more people are buying at the Applestore ONLY, especially around the world. Intermediates only get on the way and never facilitate anything (especially outside the US).



     


    Don't know about the rest of the world, however In the US, the buying pattern for iPhones, iPads and Macs is:


     


    Quote:


    "Apple sold just 21 percent of iPhones purchased between December 2011 and August 2012, according to a study by Consumer Intelligence Research Partners (CIRP). Indeed, AT&T outlets sold 28 percent and Verizon sold 26 percent of iPhones. Sprint recently said it sold more iPhones than Apple Stores."



    "As for iPads, Best Buy and Amazon combined sold nearly as many as Apple’s 250 US stores.



    "Mac sales was the only segment Apple Stores dominate, selling 47 percent of computers during the period, according to CIRP figures. Retail giant Best Buy was the next closest, selling 27 percent.



    "It’s easy to forget Apple has relatively few retail stores."




    - Most iPhones not sold by Apple stores


  • Reply 16 of 18
    matrix07matrix07 Posts: 1,993member
    kdarling wrote: »
    Yep, that's true.

    Btw, analysts have noticed this phenomenon about once a year, but usually it's done the quarter before a new model comes out... when sales are really slow.   Apple diverts all the oldest model phones to retailers to get the sales numbers up, and to keep from having a glut of them at their own stores when the new model hits.

    Huh, your story is so one-dimentional I don't know why you love to quote it so much, especially since we have every insane things about Apple coming off "analysts" mouths every day. You talked like retailer is just a dumb pipe that Apple can dump any products to them without them having a saying. Are you actually believe that yourselves?

    "Hey.. The earning report coming up. Quick! Dumps 80% of everything to Best Buy." :roll eyes:
  • Reply 17 of 18
    jragostajragosta Posts: 10,473member
    cash907 wrote: »
    But that doesn't make sense. Why would they place higher stocking priority on 3rd party outlets, with their lower profit margin per unit sold, over their own in house stores? Again, Cook is supposed to be this wiz logistics guy, so why can't he keep his own online/b&m stores stocked?

    It's not that simple.

    In a brick and mortar store, if the customer comes in needing a computer or phone, you need to have the product in stock. If you don't, the customer might just as well buy one of the 100 competitive products on the shelf - especially since the sales person probably gets spiffs from the competition and wants to sell something else, anyway.

    People buying at the Apple Store are more likely to wait a little while to get their hands on the product. They're not having competitors' products shoved in their face and they're probably more loyal to start with.

    In addition, there may be contractual issues requiring Apple to supply partners stores a certain quantity of product. Or, the retailer might decide it's just not worth the bother if getting supply is too difficult.

    So there might be a reason to ensure that the retailers get the product before your own stores.
  • Reply 18 of 18
    kdarlingkdarling Posts: 1,640member

    Quote:

    Originally Posted by matrix07 View Post



    You talked like retailer is just a dumb pipe that Apple can dump any products to them without them having a saying. Are you actually believe that yourselves?


     


    Hi.  Read my posts again.  Look for the phrase, "limited stock".   That's the key to understanding.  


     


    As you're pointing out, this method of shunting inventory to retailers only shows up when an item is in limited supply.  


     


    Then the supplying company has to make the choice of either giving its retailers only a portion of what they wanted to order (while also supplying their own company stores), or using the limited stock to first fill retailer orders.   The latter choice has the double benefit of keeping retailers & their customers happy, and of being able to immediately count the shipments as sales and revenue ... even if the units haven't made it to the retailers yet..


     


    PS.  It's not like channel stuffing where you boost numbers above normal.  This only makes sure you get credit for normal retailer sales.

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