Apple encountering US-wide iPhone shortage

Posted:
in iPhone edited January 2014
Checks with stores across the US show Apple to have been virtually devoid of iPhone stock for days, even at its online store -- and with signs that the company is aware of its widespread nature.



When AppleInsider contacted stores across the country, the answer was always the same: all stock of 8GB and 16GB iPhone models was completely sold out, and clerks were unsure of when their stores were receive more.



This included flagship outlets in Chicago, New York City, and San Francisco.



Staffers at some stores also appear to have been briefed ahead of time that other stores besides their own were also completely without supplies of the Apple handset. When contacting the Fifth Avenue store, the clerk noted that "all three New York stores" were without stock. At Miami's store at The Falls, one employee stated that supplies were "constrained" throughout all of Florida as well as in New York.



The sudden shortfall has been further confirmed by reports from AppleInsider readers. In several cases, their own investigations reported all stores in a given state running out, including Michigan, New Jersey, Pennsylvania, and Texas. Many if not all AT&T stores were also said to have run out of inventory.



Apple's online store for the US, usually a bellwether of overall supply, currently shows a 5-7 day shipping delay for iPhones regardless of model.



The latest check reveals a shortage that has only been exacerbated since it began last week on a smaller scale. International stores have fared better, though Apple France continued to show only the 8GB model as available. Austrian, Irish, and German stores list both models, though none of these currently allow customers to order the iPhone online.



Despite the pervasive issue, Apple has not provided an official explanation for its rapidly depleting iPhone offerings. The shortfall comes months ahead of new models predicted by analysts and is uncharacteristic for the modern incarnation of the Cupertino, Calif.-based electronics firm, which quickly recovered its inventories even from the initial iPhone shortage that followed the weekend after the product's launch in June 2007.



When pressed, one retail clerk in Las Vegas' Fashion Show Apple store would only venture that there was likely a mismatch between supply and demand.



"They're just popular," the worker said.
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Comments

  • Reply 1 of 61
    drjjonesdrjjones Posts: 162member
    Quote:
    Originally Posted by AppleInsider View Post


    Checks with stores across the US show Apple to have been virtually devoid of iPhone stock for days, even at its online store -- and with signs that the company is aware of its widespread nature.



    When AppleInsider contacted stores across the country, the answer was always the same: all stock of 8GB and 16GB iPhone models was completely sold out, and clerks were unsure of when their stores were receive more.



    This included flagship outlets in Chicago, New York City, and San Francisco.



    Staffers at some stores also appear to have been briefed ahead of time that other stores besides their own were also completely without supplies of the Apple handset. When contacting the Fifth Avenue store, the clerk noted that "all three New York stores" were without stock. At Miami's store at The Falls, one employee stated that supplies were "constrained" throughout all of Florida as well as in New York.



    The sudden shortfall has been further confirmed by reports from AppleInsider readers. In several cases, their own investigations reported all stores in a given state running out, including Michigan, New Jersey, Pennsylvania, and Texas. Many if not all AT&T stores were also said to have run out of inventory.



    Apple's online store for the US, usually a bellwether of overall supply, currently shows a 5-7 day shipping delay for iPhones regardless of model.



    The latest check reveals a shortage that has only been exacerbated since it began last week on a smaller scale. International stores have fared better, though Apple France continued to show only the 8GB model as available. Austrian, Irish, and German stores list both models, though none of these currently allow customers to order the iPhone online.



    Despite the pervasive issue, Apple has not provided an official explanation for its rapidly depleting iPhone offerings. The shortfall comes months ahead of new models predicted by analysts and is uncharacteristic for the modern incarnation of the Cupertino, Calif.-based electronics firm, which quickly recovered its inventories even from the initial iPhone shortage that followed the weekend after the product's launch in June 2007.



    When pressed, one retail clerk in Las Vegas' Fashion Show Apple store would only venture that there was likely a mismatch between supply and demand.



    "They're just popular," the worker said.



    maybe we get new phones tomorrow? It's a Tuesday. All nicely stacked in pallets delivered at 8 am.. let's all fantasize together now. wahhoot 1st post
  • Reply 2 of 61
    parkyparky Posts: 383member
    Price cut perhaps?
  • Reply 3 of 61
    Perhaps all the inventory has been re-routed to Canada on an impending launch.



    :end Fantasy
  • Reply 4 of 61
    macvictamacvicta Posts: 346member
    Wasn't there a lot of hoopla last month about an analyst who said Apple cut iPhone production?
  • Reply 5 of 61
    feynmanfeynman Posts: 1,087member
    Yeah it's way to early for the 3G models.



    What I see them doing is another price drop, cutting production of current models, and starting to clear inventory. Then ramping production of the new models in May, getting fresh stock of 3G models in the second week of June (WWDC Baby)!
  • Reply 6 of 61
    Well this kinda sucks. I'm going to the states in a month and I was gonna get an iPhone while I was there, =( Really hope that the shortage will be over by then. If not, hope the 3G comes out soon. I can't see it coming out till at least WWDC though.
  • Reply 7 of 61
    backtomacbacktomac Posts: 4,579member
    Why would Apple reduce the price on the iPhone when they already face a supply shortage?
  • Reply 8 of 61
    Quote:
    Originally Posted by drjjones View Post


    maybe we get new phones tomorrow? It's a Tuesday. All nicely stacked in pallets delivered at 8 am.. let's all fantasize together now. wahhoot 1st post



    I smell an April Fool's joke tomorrow.
  • Reply 9 of 61
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by Feynman View Post


    Yeah it's way to early for the 3G models.



    What I see them doing is another price drop, cutting production of current models, and starting to clear inventory. Then ramping production of the new models in May, getting fresh stock of 3G models in the second week of June (WWDC Baby)!



    You drop prices to clear inventory, not the reverse...



    I find it hard to believe that this is clearing the way for 3G models, but its hard to imagine any other explanation. With company owned retail stores I can't imagine such a shortfall in production lacking a price drop or other stimulus.
  • Reply 10 of 61
    ifanifan Posts: 6member
    I work at an AT&T store in Illinois and all of the Apple stores are out of iphones (at least the 16GB version) as well. My store has mysteriously been kept supplied, although we are pretty low, we have both versions in stock. I have noticed a lot less phones being shipped to us, though.
  • Reply 11 of 61
    All three Apple Stores in Oregon are completely sold out of both models. With the iPhone version 2 now verified, this can't be a complete coincidence.
  • Reply 12 of 61
    jeffdmjeffdm Posts: 12,951member
    Quote:
    Originally Posted by cameronj View Post


    You drop prices to clear inventory, not the reverse...



    I find it hard to believe that this is clearing the way for 3G models, but its hard to imagine any other explanation. With company owned retail stores I can't imagine such a shortfall in production lacking a price drop or other stimulus.



    It may be possible that there is going to be a restyling, meaning that the existing models might not fit the new lineup very well.



    There may also be supply problems for certain parts, or an unexpected run in demand.
  • Reply 13 of 61
    brussellbrussell Posts: 9,812member
    I don't see them dropping the original iPhone immediately after releasing the next generation anyway, so this most likely has absolutely nothing to do with new iPhones.
  • Reply 14 of 61
    Quote:
    Originally Posted by Feynman View Post


    Yeah it's way to early for the 3G models.



    What I see them doing is another price drop, cutting production of current models, and starting to clear inventory. Then ramping production of the new models in May, getting fresh stock of 3G models in the second week of June (WWDC Baby)!



    After these reports - I'm thinking the iPhone is about to split into 2 different product lines.



    One of those lines we'll see very shortly. The other will include 3G and will be a few months away.



    I wonder if GPS will be in these.
  • Reply 15 of 61
    Quote:
    Originally Posted by yulelog035 View Post


    I smell an April Fool's joke tomorrow.



    Maybe. You do know when Apple was founded, right?
  • Reply 16 of 61
    tenobelltenobell Posts: 7,014member
    Quote:

    It may be possible that there is going to be a restyling, meaning that the existing models might not fit the new lineup very well.



    Yeah I think this is more than likely. The past few years Apple has pretty consistently redesigned its mobile devices during a product refresh.



    Quote:

    I don't see them dropping the original iPhone immediately after releasing the next generation anyway, so this most likely has absolutely nothing to do with new iPhones.



    I would see Apple using the same design across all iPhones and simply dropping the price of the 8GB.
  • Reply 17 of 61
    bageljoeybageljoey Posts: 2,004member
    Quote:
    Originally Posted by JeffDM View Post


    It may be possible that there is going to be a restyling, meaning that the existing models might not fit the new lineup very well.



    There may also be supply problems for certain parts, or an unexpected run in demand.



    Could be that they were fearing a freeze on demand before the impending 3G release so they are allowing supply to dwindle to nothing (free publicity) before a minor bump like a bit more storage or something (another burst of free publicity).

    This has the advantage of keeping sales up before the big event and keeps the iPhone being reported in a positive light: "iPhone outsells supply!" and "Now with more storage!" sound a lot better than "Demand for iPhones stalls for a quarter."



    With the initial price still quite high and customers limited to one carrier, the iPhone depends on hype to keep things going. I'm not saying that they are not worth it, just that they need something extra to overcome those two drawbacks.
  • Reply 18 of 61
    bwikbwik Posts: 565member
    Pretty interesting.



    Apple might run dry for a whole month to flush out all inventory. I dunno. Sounds a little risky, but most buyers are likely to wait patiently. So it shouldn't sacrifice too many sales.



    Only Apple is strong enough to keep people loyal even with no product to sell
  • Reply 19 of 61
    Quote:
    Originally Posted by Bageljoey View Post


    Could be that they were fearing a freeze on demand before the impending 3G release so they are allowing supply to dwindle to nothing (free publicity) before a minor bump like a bit more storage or something (another burst of free publicity).

    This has the advantage of keeping sales up before the big event and keeps the iPhone being reported in a positive light: "iPhone outsells supply!" and "Now with more storage!" sound a lot better than "Demand for iPhones stalls for a quarter."...



    I agree entirely.



    We know 3G is coming in 2008

    We know WWDC (which would be an entirely likely event to release the 3G iPhone at) is in June

    We know June is the one year anniversary of the iPhone



    Since consumers know all of this (at least the ones perusing AppleInsider do), why would we buy an iPhone now, when a newer, faster model likely to have higher storage capacities (and some goodies we don't know about) comes out in 3 months?



    We wouldn't. So, just like you said: they choose to manipulate their inventories to make it look like the iPhone is selling as quick as ever.



    Clever, Apple. *Shifty eyes*
  • Reply 20 of 61
    irelandireland Posts: 17,798member
    It is April 1st guys.
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