iPhone 3G now all but sold out in 38 states

Posted:
in iPhone edited January 2014
With the iPhone 3G not even ten days old, virtually all of the Apple retail store stores open within the United States are without any examples of the device to sell on July 21st.



The shortage is severe enough in the 38 states that claim Apple stores that it's easier to count the locations that do have iPhone 3G units than those that don't.



In California, the only Apple store with any iPhones is the Pleasanton store with only 16GB black examples, while New York City's Fifth Avenue store is the only one in all of New York state known to have any examples left, with just 16GB white models in stock.



Only a single Honolulu store and the Salem, New Hampshire store can also claim to have any units available, and each only lists one model as ready for Monday.



Apple has been continually resupplying its stores with new iPhones -- in many cases on a daily basis -- but has seen fewer and fewer of its stores touting next-day availability in the several days since the July 11th debut of the handset upgrade.



The company's own outlets are already seen as the bellwethers for looming American shortages. Sellouts first crept up in late March for Manhattan-area stores but quickly spread through the rest of the country and to AT&T locations in a matter of weeks.



For iPhone 3G, shortages manifested as early as launch day and have spread much more quickly than for the end days of the first model, with AT&T running dry of any guaranteed units before the first weekend was over.



Whether or not Apple's supply will meet demand in time to prevent a repeat of May's complete stockout is also far from certain. When grilled on an unprecedented spike in preorders, Britain's iPhone carrier O2 said it might take "some weeks" before it could satisfy enough of its customers on a regular basis.
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Comments

  • Reply 1 of 103
    bageljoeybageljoey Posts: 1,916member
    I hope this is what they wanted.



    Otherwise, the same-day, worldwide-opening of this highly anticipated product looks to be a rather bonehead move...
  • Reply 2 of 103
    ivladivlad Posts: 742member
    Well I blame China, for taking all the time to prepare for the Olympics and not making iPhones.





    lol

    jk
  • Reply 3 of 103
    Quote:
    Originally Posted by Bageljoey View Post


    I hope this is what they wanted.



    Otherwise, the same-day, worldwide-opening of this highly anticipated product looks to be a rather bonehead move...



    How is selling out a dumb move? They sold unbelievable quantities; probably as many units as they could manufacture. What were they supposed to do - wait until they could make more (and sell none in the meantime)?
  • Reply 4 of 103
    dagamer34dagamer34 Posts: 494member
    Apple is now filling more and more Direct Fulfillment orders from AT&T since they gave them the shaft during launch day. My 16GB black iPhone 3G I ordered on launch day will finally be arriving tomorrow.



    Apple just didn't prepare for demand. A worldwide launch sounds like a nice thing, but it's a logistical nightmare. The same with introducing colors at the launch of a new product. You run out of stock of one phone (16GB black) faster than others.



    I really think they learned from this launch that a staggered release is the best approach and that they need to ramp up production for a while before any release.
  • Reply 5 of 103
    merdheadmerdhead Posts: 587member
    Quote:
    Originally Posted by Bageljoey View Post


    I hope this is what they wanted.



    Otherwise, the same-day, worldwide-opening of this highly anticipated product looks to be a rather bonehead move...



    Or maybe they just misjudged demand. Anyway, how would a staggered launch be any better? That would mean some people get phones and other places get none. Or do you mean that America should have been first according to the "America is the centre of the universe" rule?



    BTW, is it just me or is this article written in tortured English?
  • Reply 6 of 103
    Quote:
    Originally Posted by nevenmrgan View Post


    How is selling out a dumb move? They sold unbelievable quantities; probably as many units as they could manufacture. What were they supposed to do - wait until they could make more (and sell none in the meantime)?



    I think he meant not having the whole world selling them on the same day. Such as 4 or 5 countries launching on the 11th, then 4 or 5 more 2 weeks later, and so on so that they could stock all the stores better for each launch. They obviously didn't manufacture enough ahead of time. I still don't have one myself...
  • Reply 7 of 103
    nagrommenagromme Posts: 2,834member
    I don't think staggering a couple weeks was going to help much. In fact, it would have made the "late" countries' customers (and carriers!) even madder.



    Production will catch up. It's a nice problem for Apple to have! And generates publicity too.



    Not so nice for me, who wanted to get one in about 2 weeks...
  • Reply 8 of 103
    merdheadmerdhead Posts: 587member
    Quote:
    Originally Posted by dagamer34 View Post


    Apple is now filling more and more Direct Fulfillment orders from AT&T since they gave them the shaft during launch day. My 16GB black iPhone 3G I ordered on launch day will finally be arriving tomorrow.



    Apple just didn't prepare for demand. A worldwide launch sounds like a nice thing, but it's a logistical nightmare. The same with introducing colors at the launch of a new product. You run out of stock of one phone (16GB black) faster than others.



    I really think they learned from this launch than a staggered release is the best approach and that they need to ramp up production for a while before any release.



    How is a worldwide launch a logistical nightmare? Just ship the units to where they're going and maybe setup a distributor for bigger markets. It's not like Jobs is personally delivering them by mule. Have you heard of FedEx? Or maybe UPS? They have to supply them there anyway and they surely have enough staff.



    Apple is much better off giving everyone a chance to get a phone that releasing in select markets. Who gets to go first? Let me guess: "my country first". You're obviously not suggesting that you wait a few more weeks so someone else could get their phone.
  • Reply 9 of 103
    merdhead, no one is claiming that their country should be the first, everyone is saying that if they couldn't ramp up production to make enough for all the countries releasing them at the same time, then they should have staggered them. You are the only one assuming that the these people meant their countries first.



    It would make sense to do the top selling countries first and then move on to the newer markets at a later period. And why would the US being one of the first countries be bad? It's their original and top selling market... should Zimbabwe be the launching ground of the iphone 3G? It's business, not a game in preschool where everyone is equal.
  • Reply 10 of 103
    boogabooga Posts: 1,081member
    If I were Apple, what I would have done is have the launch on July 11th with each handset costing $600, and pre-announce that in 6 weeks the handsets will be subsidized and start costing $200 with an AT&T (or whatever for your given country) lock-in. That way everyone knows what's happening, Apple can sell them online and have at-home activation (no insane lines), and a tidy extra profit is made off the first phones sold.



    Of course, once supply matches demand, do the "second launch" of the $200 phone and do the in-store activation and all that jazz. In the meantime, soak the early adopters for some extra money and let supply and demand dictate the cost.



    Or just sell them all at auction.
  • Reply 11 of 103
    bageljoeybageljoey Posts: 1,916member
    Quote:
    Originally Posted by merdhead View Post


    Or maybe they just misjudged demand. Anyway, how would a staggered launch be any better? That would mean some people get phones and other places get none. Or do you mean that America should have been first according to the "America is the centre of the universe" rule?



    Thanks for putting words in my mouth, Merd. Nowhere did I even intimate some sort of America First policy. Certainly, I think it would have been cool to begin the rollout in countries that had not had a chance to buy the original iPhone through normal retail channels, like Japan and Mexico and such. [Although this would have been easier if the first gen iPhone had not run out over a month earlier in the other countries.] However, would it have been such an outrage to begin shipping in the US? Apple was an American company last time I checked with the US representing the lion's share of its sales--thus making it the centre of Apple's universe.



    Either way, I think maybe it would have been advisable to stager the openings so they could get a better handle on demand and production needs so as not to run out world-wide. While it can generate some good press, if delays continue they can also lead to resentment. Some people might get hyped up about buying a new phone thinking of the iPhone and then purchase another brand if the iPhone is unavailabe for a while. Finally, it could possibly take some of the shine off the vaunted halo. What does it say about the company that couldn't see this comming? I mean I worried about the world-wide rollout as soon as I read about it and I am no genius.





    Anyway, as an aside, I remember many of posters knocking on anyone who would wait in line on the first day with statements like "you can wait in line for 5 hours if you want, but I will roll up and buy one at 4:00 PM without any wait at all!" I wonder if they have theirs yet..
  • Reply 12 of 103
    bageljoeybageljoey Posts: 1,916member
    Quote:
    Originally Posted by nagromme View Post


    I don't think staggering a couple weeks was going to help much. In fact, it would have made the "late" countries' customers (and carriers!) even madder.



    Well, one benefit of staggering is that you can significantly overproduce for the first launch. Then if demand is softer than expected, you can slow production to allow the following rollouts to clear supplies. With a worldwide rollout, you cannot overproduce without worrying about getting stuck with tons of unwanted devices.

    Conversely, if demand is significantly higher than expected, there is some time to ramp up production while blowing out the cushion.





    Quote:

    Production will catch up. It's a nice problem for Apple to have! And generates publicity too.



    Probably true. But as I said earlier, it could breed resentment if it continues too long.
  • Reply 13 of 103
    merdheadmerdhead Posts: 587member
    Quote:
    Originally Posted by rctshack View Post


    merdhead, no one is claiming that their country should be the first, everyone is saying that if they couldn't ramp up production to make enough for all the countries releasing them at the same time, then they should have staggered them. You are the only one assuming that the these people meant their countries first.



    It would make sense to do the top selling countries first and then move on to the newer markets at a later period. And why would the US being one of the first countries be bad? It's their original and top selling market... should Zimbabwe be the launching ground of the iphone 3G? It's business, not a game in preschool where everyone is equal.



    When someone says staggered, they mean me first then everyone else. Do you think anyone who is complaining about supply and suggesting staggering is volunteering to delay their purchase?



    It's all so reasonable when it's just so happens your country is the most important, and that's the attitude, nothing more, nothing less. It's just a American centric point of view and you don't even know you have it.
  • Reply 14 of 103
    Quote:
    Originally Posted by merdhead View Post


    BTW, is it just me or is this article written in tortured English?



    YES, that is exactly what I was thinking. It almost hurt to read it.
  • Reply 15 of 103
    tenobelltenobell Posts: 7,014member
    Are you people actually arguing that selling out of your product is a bad thing? What company would rather have product sitting on shelves collecting dust rather than to be sold out?
  • Reply 16 of 103
    merdheadmerdhead Posts: 587member
    Quote:
    Originally Posted by Bageljoey View Post


    Thanks for putting words in my mouth, Merd. Nowhere did I even intimate some sort of America First policy. Certainly, I think it would have been cool to begin the rollout in countries that had not had a chance to buy the original iPhone through normal retail channels, like Japan and Mexico and such. [Although this would have been easier if the first gen iPhone had not run out over a month earlier in the other countries.] However, would it have been such an outrage to begin shipping in the US? Apple was an American company last time I checked with the US representing the lion's share of its sales--thus making it the centre of Apple's universe.



    Either way, I think maybe it would have been advisable to stager the openings so they could get a better handle on demand and production needs so as not to run out world-wide. While it can generate some good press, if delays continue they can also lead to resentment. Some people might get hyped up about buying a new phone thinking of the iPhone and then purchase another brand if the iPhone is unavailabe for a while. Finally, it could possibly take some of the shine off the vaunted halo. What does it say about the company that couldn't see this comming? I mean I worried about the world-wide rollout as soon as I read about it and I am no genius.





    Anyway, as an aside, I remember many of posters knocking on anyone who would wait in line on the first day with statements like "you can wait in line for 5 hours if you want, but I will roll up and buy one at 4:00 PM without any wait at all!" I wonder if they have theirs yet..



    Yeah, yeah there's a million reasons why America should be first and that's why you're suggesting it. America is No 1, yada, yada, yada. If you were some two bit country in Africa you wouldn't be.



    The fact is that staggering will exclude people completely. They won't get one no matter how early they line up. That's unfair to most people and would reflect much more poorly on Apple. And the fact is that international markets are more important than the American market these days (and even more so after the US slips in the deep and long recession that is coming) so American companies can't treat international customers with complete contempt anymore.
  • Reply 17 of 103
    merdheadmerdhead Posts: 587member
    Quote:
    Originally Posted by TenoBell View Post


    Are you people actually arguing that selling out of your product is a bad thing? What company would rather have product sitting on shelves collecting dust rather than to be sold out?



    People are just sore that they couldn't get their shiny new toy.
  • Reply 18 of 103
    bageljoeybageljoey Posts: 1,916member
    Quote:
    Originally Posted by Booga View Post


    Or just sell them all at auction.





    I like this idea! Talk about free markets setting the price...



    As an aside, am always annoyed when tickets to popular concert tours are only available at a significant markup from professional ticket resellers. It just seems wrong to me that the tickets are being sold for, say, $75 originally when a significant portion of them will be resold for much, much more. Why should the concert promoters continue selling at an irrational price letting resellers make the profit?



    I assume it is because the backlash against the artist and/or their promoters would be extreme if they were the ones asking $500 a seat.



    My solution would be to sell the tickets at a declining rate--sort of a reverse auction. Tickets would be sold in order from best to worst. Prices would start out very high but decline as time passes. Those wanting the best seats would have to pony up while prices were high. Very popular concerts would start selling out earlier and thus would have a higher average selling price.

    $100 might get you fantastic seats at a Menudo concert, but might leave you towards the back of a Pearl Jam show...
  • Reply 19 of 103
    This past Friday, I called the Apple store in a mall here in Dallas - they told me to hurry. I got on a line with 50 people in front of me. An employee closed the line after 1 more guy behind me and told everyone they only had 16GB Black left. Over the next hour or so, many, many people showed up and were turned away. Some drove from the boonies. I got a perfect specimen - no dead pixels or other visible problems.
  • Reply 20 of 103
    bageljoeybageljoey Posts: 1,916member
    Quote:
    Originally Posted by merdhead View Post


    Yeah, yeah there's a million reasons why America should be first and that's why you're suggesting it. America is No 1, yada, yada, yada. If you were some two bit country in Africa you wouldn't be.



    Jesus, man, get that chip off your shoulder.

    Quote:

    The fact is that staggering will exclude people completely. They won't get one no matter how early they line up. That's unfair to most people and would reflect much more poorly on Apple. And the fact is that international markets are more important than the American market these days (and even more so after the US slips in the deep and long recession that is coming) so American companies can't treat international customers with complete contempt anymore.





    The point here, is expectations. Staggered rollouts happen all the time--especially with hi-tech items for this exact reason. Sony started with the most recent Playstation in Japan months before it got to the US if I remember correctly. This was announced before hand and there were no riots and few recriminations.



    And merdhed, please note that I already agreed with you in my reply that you quoted. I NEVER said that the rollout had to begin in the US. They could have started with every country that had not had official resellers of the first gen iPhone and probably would have scored some fantastic publicity.



    By the way, your turning this into an America bashing excercise is a little tiresome. Are you rooting for the US to suffer a big recession? Will that make you happy? I mean, I am all about finding fault with American policies and American corporations, but you are putting words into my mouth and seem to be hoping individual Americans get hurt--that makes you a putz in my eyes if it is true...
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