Demand for Apple's new iPod shuffle outstripping supply
Apple Computer's second-generation iPod shuffle is in extremely high demand this month with sales tracking in excess of 5 million for the quarter, AppleInsider has been told.
People familiar with the matter say Apple executives are thrilled with the strong response to the diminutive 1GB flash-based digital music player, which recently eclipsed the iPod nano by rising to the forefront of the company's top seller list.
The entry-level player is selling out at some resellers faster than Apple can provide fresh stock and, come the close of the holiday shopping season, could account for as many as 6 to 8 million unit sales, those same people claim.
During an interview last week, Apple vice president of worldwide sales, Phil Schiller, similarly characterized early reaction to the new shuffle as "tremendous" and "phenomenal." While Schiller's comments were the first from the Cupertino, Calif.-based company in relation to sales of the player, some industry watchers on Wall Street seem to have received a heads up.
Shaw Wu, an analyst at American Technology Research, had previously observed strong sales both from first- and third-party retailers and speculated that the player could become the unexpected bestseller of Apple's entire iPod repertoire. Even earlier, Needham and Co.'s Charles Wolf had mentioned that he had been hearing the new shuffle could be "huge." Already, it has emerged as the top-selling item at both the American and Canadian online Apple Stores, followed by its counterparts the iPod nano and fifth-generation video iPod.
Checks with both Apple and big-box retailers have verified that demand for the newest iPod is quickly outstripping supply. While select online stores such as Best Buy and MacMall (which is also offering a free FM tuner with purchase) continue to show immediate availability, many are facing extended lead times or even total unavailability as they struggle to cope with the unexpected popularity of the device.
As of late Friday afternoon, the internet's largest retailer Amazon.com was devoid of stock in its warehouses and only shipping the player through affilliate Blue Proton, which maintains supply but is subsequently charging a premium price of $109 -- a full $30 above the official $79 list price. Crutchfield and other electronics stores also reflect recently drained inventory. Hardest hit is Target, which estimates a minimum two-week delay for new orders.
The online Apple Store itself is showing indications of a gradually building strain on inventory. European customers hoping to buy the iPod shuffle directly from Apple can face as much as a five-day interval between placing an order and receiving the shipping notice. Other iPods ship within 24 hours, Apple says. The normally well-supplied American and Canadian sites themselves face unusual delays, with orders in either country requiring one to two business days' lead time.
Black Friday and the coinciding Apple promotions are likely to compound the situation; as the peak day of Christmas shopping, the day after Thanksgiving will almost certainly see a dramatic spike in iPod shuffle sales as customers are drawn in by discounts on related products. However, due to its existing popularity, Apple is unlikely to discount the player for the 24-hour sale.
People familiar with the matter say Apple executives are thrilled with the strong response to the diminutive 1GB flash-based digital music player, which recently eclipsed the iPod nano by rising to the forefront of the company's top seller list.
The entry-level player is selling out at some resellers faster than Apple can provide fresh stock and, come the close of the holiday shopping season, could account for as many as 6 to 8 million unit sales, those same people claim.
During an interview last week, Apple vice president of worldwide sales, Phil Schiller, similarly characterized early reaction to the new shuffle as "tremendous" and "phenomenal." While Schiller's comments were the first from the Cupertino, Calif.-based company in relation to sales of the player, some industry watchers on Wall Street seem to have received a heads up.
Shaw Wu, an analyst at American Technology Research, had previously observed strong sales both from first- and third-party retailers and speculated that the player could become the unexpected bestseller of Apple's entire iPod repertoire. Even earlier, Needham and Co.'s Charles Wolf had mentioned that he had been hearing the new shuffle could be "huge." Already, it has emerged as the top-selling item at both the American and Canadian online Apple Stores, followed by its counterparts the iPod nano and fifth-generation video iPod.
Checks with both Apple and big-box retailers have verified that demand for the newest iPod is quickly outstripping supply. While select online stores such as Best Buy and MacMall (which is also offering a free FM tuner with purchase) continue to show immediate availability, many are facing extended lead times or even total unavailability as they struggle to cope with the unexpected popularity of the device.
As of late Friday afternoon, the internet's largest retailer Amazon.com was devoid of stock in its warehouses and only shipping the player through affilliate Blue Proton, which maintains supply but is subsequently charging a premium price of $109 -- a full $30 above the official $79 list price. Crutchfield and other electronics stores also reflect recently drained inventory. Hardest hit is Target, which estimates a minimum two-week delay for new orders.
The online Apple Store itself is showing indications of a gradually building strain on inventory. European customers hoping to buy the iPod shuffle directly from Apple can face as much as a five-day interval between placing an order and receiving the shipping notice. Other iPods ship within 24 hours, Apple says. The normally well-supplied American and Canadian sites themselves face unusual delays, with orders in either country requiring one to two business days' lead time.
Black Friday and the coinciding Apple promotions are likely to compound the situation; as the peak day of Christmas shopping, the day after Thanksgiving will almost certainly see a dramatic spike in iPod shuffle sales as customers are drawn in by discounts on related products. However, due to its existing popularity, Apple is unlikely to discount the player for the 24-hour sale.
Comments
The owner told me that the twenty Suffles that he received last week were all "signed up for" and gone. He is expecting more middle of this week -- I got in line.
So, it sounds like there is some truth to this story, at least from my (limited) geographic perspective.
So, it sounds like there is some truth to this story, at least from my (limited) geographic perspective.
There's a lot of truth to the story. The shuffle is going to be HUGE. It may be 50% of all iPod sales by total unit number sold.
... the real story is the (RED) iPods. He said they can't keep them on the shelves.
Ordered two of those too, today (this time, from the Apple Store). Engraved. (
Apple claims it'll ship between Nov 21 and 23, and that it should get to me in about a week after that. I hope so.
The small factor is a huge advantage for the shuffle. It's absolutely perfect if you use it for workout.
My only problem is that the earphones are not great specially when you sweat too much. If it gets on the phones, see you later, the sound gets horrible.
Does anybody recommend good in-canal earphones for workouts?
PS. The current generation of iPod Video, what are the major differences between it and the previous-generation of iPod Video? [I will research this, please hold... but feel free to chime in]...
Data capacity on the large one, brighter screen and battery life. I think part of the new search feature is not on the old 5G.
Come to think of it, I haven't seen the new shuffle in person yet.
Data capacity on the large one, brighter screen and battery life. I think part of the new search feature is not on the old 5G.
Come to think of it, I haven't seen the new shuffle in person yet.
Yeah, you're right. The other difference is the ability to play the iPod Games.
Yeah, you're right. The other difference is the ability to play the iPod Games.
My 5G iPod plays the games just fine.
Yeah, you're right. The other difference is the ability to play the iPod Games.
As far as I know, both versions can play the games. The game section in the iTunes store says they only work on iPod (with video), their parentheses, not mine. It makes no distinction between the two versions of the 5th generation iPod.
At least they did back-port some of the search feature, the backlight dimming helps too, the screen is a lot brighter than I need it to be. I wish the 1G nano had backlight dimming.
My 5G iPod plays the games just fine.
My bad, I thought the games were only for the 5.5 revision. I stand corrected.
Only difference is the brighter screen and better battery life. The firmware update gave the 5G ipod the capability to play games and the scrolling letter feature, as well as the ability to adjust brightness of the screen.
There really is a new search feature where you can click in a few letters and it will return a list of matches. They didn't put it on the original 5G.
To see it demonstrated go here and click "Search" that's to the left of the iPod:
http://www.apple.com/ipod/features.html
Data capacity on the large one, brighter screen and battery life. I think part of the new search feature is not on the old 5G....
Can teh old 5G handle the new funky Games you can buy off the iTunes Store?
Edit: Okay, answered above, didn't see it...
Come to think of it, I haven't seen the new shuffle in person yet.
You should. Get a feel of it as well. Nothing like playing with it in person. Puts a lot of the discussions we've had here in perspective.