Apple's massive fall lineup reportedly causing shipping delays for other manufacturers
Apple is reportedly securing dates for its upcoming fall shipments, expected to include new iPhone and iPad models, and the number of devices coming out of China is so large that major shipping companies are delaying orders from other device makers.
According to TechCrunch, Apple's preparations for the upcoming holiday quarter are already causing a logistics nightmare for companies like FedEx and UPS, which are reportedly strapped for capacity after seeing a flood of bookings.
Carriers are telling customers that shipments for a "very important customer" are causing them to miss promised deadlines, according to one unnamed company. With very few corporations in need of such immediate high-capacity services, and even fewer coming out of China's electronics manufacturing regions, Apple is thought to be behind the overflow.
Shipping companies have learned to plan for Apple's yearly refresh cycles. For example, FedEx in 2012 braced employees for "surge volume" reportedly attributed to the iPhone 5 launch. The batch of devices coming out of China this year, however, appears to be overwhelming.
Apple is expected to announce two new iPhone models at an event scheduled for Sept. 9, which is also said to feature the unveiling of a wearable "iWatch" device. While the iPhones are thought to ship later this month, the iWatch will likely hit store shelves in 2015.
The iPad line is also due for a refresh and recent rumors point to a mention at next Tuesday's gathering, though the announcement is far from confirmed. Last year, Apple held a separate event in October to launch the iPad Air and iPad mini with Retina display.
According to TechCrunch, Apple's preparations for the upcoming holiday quarter are already causing a logistics nightmare for companies like FedEx and UPS, which are reportedly strapped for capacity after seeing a flood of bookings.
Carriers are telling customers that shipments for a "very important customer" are causing them to miss promised deadlines, according to one unnamed company. With very few corporations in need of such immediate high-capacity services, and even fewer coming out of China's electronics manufacturing regions, Apple is thought to be behind the overflow.
Shipping companies have learned to plan for Apple's yearly refresh cycles. For example, FedEx in 2012 braced employees for "surge volume" reportedly attributed to the iPhone 5 launch. The batch of devices coming out of China this year, however, appears to be overwhelming.
Apple is expected to announce two new iPhone models at an event scheduled for Sept. 9, which is also said to feature the unveiling of a wearable "iWatch" device. While the iPhones are thought to ship later this month, the iWatch will likely hit store shelves in 2015.
The iPad line is also due for a refresh and recent rumors point to a mention at next Tuesday's gathering, though the announcement is far from confirmed. Last year, Apple held a separate event in October to launch the iPad Air and iPad mini with Retina display.
Comments
A story about delayed manufacturing that explicitly ISN’T Apple? I shifted dimensions again, didn’t I…
Yeah, cry me a river...
Samsung announced today that while they have the capacity to produce product for the American Holiday market, they can not secure a sipping method that can get their product to the USA shores before the end of 2014. Carriers are telling customers that shipments for a "much more important customer" are causing them to miss promised deadlines.
Samsung's executives were told, "So solly Chalrie, you got iFrucked."
This time around I won't be shocked if it's the new mobile 802.11ac chips. it will be a huge coup for Broadcom to have announced those this past week and for Apple to have them in the iPhones and iPads cause they had already signed and sealed that deal and arranged to get them before the public knew they were ready.
Well, no one is being forced to do anything. I suspect that Apple has contracted for a massive amount of space on the shippers vessels. Most likely the shippers get paid regardless of whether any merchandise is actually shipped. Any company willing to lay down the cash can do the same. That is one advantage of having billions of dollars just sitting around.
Apple would never pay someone for not doing the job. it's not their style. UNLESS the failure is on them.
You can bet that their deal is that on X to Y dates they need this shipping and they will get it. Period. Possibly even with conditions that no one else's stuff can be on those boats, in those planes etc.
Welp, looks like it's time for Apple to invest in it's own fleet of Philippe Starck designed air freightliners.
Said telecom provider considers the success of this product as "critical to the future of the company and their business relationship with us as a logistics provider."
So my acquaintance flying to the cell company's main headquarters to oversee the shipping function personally.
That's a hell of an Apple halo effect...
What idiotic article is this?
How many iPhones get in 1 45'' container? 5.000?
50.000.000 units (over a quarter) = 10.000 containers
How many containers on a panamax? 5000?
You need 2 panamaxes to ship a quarters volume.
And someone trying to say that there isn't enough shipping capacity?
I'm pretty sure they are all going by plane. I seem to recall with the original iMac Apple was able to get a deal that made it cheaper, and of course faster, to transport their products by air than to have them shipped by sea.
What idiotic article is this?
How many iPhones get in 1 45'' container? 5.000?
50.000.000 units (over a quarter) = 10.000 containers
How many containers on a panamax? 5000?
You need 2 panamaxes to ship a quarters volume.
And someone trying to say that there isn't enough shipping capacity?
This article is about air freight, not ship-based freight. Airplanes have less capacity than ships.
Apple is willing to pay a premium for overnight air freight from their suppliers in China to points all around the world, rather than putting their inventory on boats which might take a month to get to market.
Ship-based freight is great for sacks of rice, automobiles, etc., not as great for the hottest consumer electronics.
There's plenty of shipping capacity, but only a finite amount of air freight capacity, especially within a certain timeframe. UPS and FedEx only have a certain number of planes. Sure, you could pile a million iPhones on some slow boat, but it doesn't help the customers who want that device tomorrow.
In the same way, a road is designed for a certain amount of traffic. If a large number of people want to use it at the same time, you might get a traffic jam. The alternative is to make the road bigger, but at the risk of having it nearly empty for most of the time.
For shipping companies, they typically resort to using contracted services to make up for shortfalls in peak seasons (like the holidays).
A story about delayed manufacturing that explicitly ISN’T Apple? I shifted dimensions again, didn’t I…
I should try that some time, shifting dimensions.
The music in this one isn’t very good, but there’s variety. At least this United States has land across the continent. I’m still looking for the big one, though.
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Well if Apple has payed a premium and pre-payed for the entire capacity, no other conditions would be necessary.
Please explain: land across the continent... and what 'Big One' you're looking for. Might be helpful before booking my next trip... :smokey:
Well, no one is being forced to do anything. I suspect that Apple has contracted for a massive amount of space on the shippers vessels. Most likely the shippers get paid regardless of whether any merchandise is actually shipped. Any company willing to lay down the cash can do the same. That is one advantage of having billions of dollars just sitting around.
Apple would never pay someone for not doing the job. it's not their style. UNLESS the failure is on them.
You can bet that their deal is that on X to Y dates they need this shipping and they will get it. Period. Possibly even with conditions that no one else's stuff can be on those boats, in those planes etc.
If it is actually for Apple products (most probable), I would not want to be the manufacturer(s) who could not supply the product in time for those shipments or the shipping company that couldn't handle those deliveries.