Week two: Apple stores still finding it tough to keep iPad in stock

Posted:
in Current Mac Hardware edited January 2014
Consumers looking for one of Apple's more affordable iPad models may still have trouble finding one at the company's nation retail chain, where the device continues to sell out during its second full week of availability.



A survey of 15 Apple retail stores conducted this week by investment bank J.P. Morgan found that while 11 stores had the 64 model available for purchase, only 4 stores had stock of 16GB and only another 4 had the 32GB model.



"While the sample stores represent a small fraction of the 221 U.S.-based Apple stores, we believe the targeted stores offer a decent barometer given their geographic distribution and importance," said analyst Mark Moskowitz.



For example, stores that were completely selling out of all 3 iPad versions at the time of the analyst's field checks included Palo Alto, Greenwich, CT, and Miami Beach. In contrast, stores that were completely stocked with all 3 models included Chicago, San Francisco, and Kansas City.



Apple is believed to have sold over half a million iPads in less than 10 days. And while Moskowitz believes adoption of the soon-to-ship 3G-equipped models may be lighter than their WiFi counterparts given their higher price points and data plan requirements, he still thinks there could be upside to his iPad unit estimate of 4.8 million units over the first four quarters.



"While the initial excitement could ease, we are surprised by the continued strength in the early stages," he said. "In addition to the new category entry of the iPad, another positive element is that the product?s gross margins are accretive to the corporate model."



In opening up pre-orders for the iPad last month, Apple limited consumers to just two units even if the additional units were being shipped to different individuals across the country. Education customers, especially those ordering through their representatives, weren't hit with the same restriction, however.



But when April 2nd rolled around and regular Apple Store customers began receiving their shipping notifications, a number of those education pre-order customers were being informed that their orders were being placed on the back burner and wouldn't ship to much later in the month.



Instead, Apple chose to stock its retail locations and those of Best Buy, the latter of which sold out during the first weekend the device went on sale. Since then, Apple has slowly expanded distribution to online retailers like MacMall and MacConnection, but is requiring that those resellers only accept orders placed via phone.



For its part, the Apple online store continues to list lead times of 5-7 business days for all new WiFi iPad orders.
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Comments

  • Reply 1 of 59
    I think analysts will be surprised by how many people are waiting for the 3G model.
  • Reply 2 of 59
    Quote:
    Originally Posted by 8CoreWhore View Post


    I think analysts will be surprised by how many people are waiting for the 3G model.



    I agree!
  • Reply 3 of 59
    Yes, I think there will be a larger number of units sold of the 3G version due to the fact that people want to be mobile all the time and even though the iPhone was revolutionary, it can be a bit small for some task and the iPad takes care of that. I personally have been waiting for the iPad for 3 years now and had an inclination that it would eventually come to market. I am waiting for my email notification like so many others who ordered the 3G on day one of the pre-order stage. I will be interested in seeing the number of units to sell when they get released...



    2 cents for the day...
  • Reply 4 of 59
    ftrv8ftrv8 Posts: 4member
    +1 On waiting for the 3G one as well. Hate to see my buddy with his wifi version playing with his all the time.



    He who laughs last, laughs hardest!
  • Reply 5 of 59
    The iPad will continue to experience brisk sales cause ATT's new commercials are sweet.
  • Reply 6 of 59
    minimoeminimoe Posts: 14member
    Here's another waiting for the 3G. And I agree the number of us doing so exceeds that of those buying the WiFi model. I don't find it surprising the 64GB Wifi aren't selling as well. Those who can afford one can afford the $130 extra for 3G & GPS.
  • Reply 7 of 59
    Quote:
    Originally Posted by miniMoe View Post


    Here's another waiting for the 3G. And I agree the number of us doing so exceeds that of those buying the WiFi model. I don't find it surprising the 64GB Wifi aren't selling as well. Those who can afford one can afford the $130 extra for 3G & GPS.



    I agree and also have a 3G unit on order (64g).
  • Reply 8 of 59
    sflocalsflocal Posts: 5,762member
    I purposely have not visited my local Apple store in San Francisco until the 3G comes out. Have not seen on in person yet. While ordering online is nice and convenient, there's something about going into the store, seeing there in person and then walking out with one.



    Mentally prepared to let some money go.
  • Reply 9 of 59
    mayb2mayb2 Posts: 3member
    I ordered both models wifi and 3G figuring I would return or sell the wifi when the 3G hit. I ended up canceling the 3G model.
  • Reply 10 of 59
    quinneyquinney Posts: 2,528member
    Quote:
    Originally Posted by AppleInsider View Post


    Moskowitz believes adoption of the soon-to-ship 3G-equipped models may be lighter than their WiFi counterparts given their higher price points and data plan requirements, he still thinks there could be upside to his iPad unit estimate of 4.8 million units over the first four quarters.



    I wonder what his estimate would be if he knew there was no requirement to pay for a data plan.
  • Reply 11 of 59
    alandailalandail Posts: 696member
    Quote:
    Originally Posted by 8CoreWhore View Post


    I think analysts will be surprised by how many people are waiting for the 3G model.



    I would think the 3G model will outsell the wifi model. This thing is meant to be connected to the internet all of the time. In the few days I've had a wifi one, there have been at least a half dozen times i was somewhere not connected to the internet when I needed to be. We have a use for one or two that only need wifi, but for us, those will be the exception, not the rule.



    Before we got this one, I thought the data plan would be something to turn on for trips, but have quickly seen that I would need it all of the time.
  • Reply 12 of 59
    foo2foo2 Posts: 1,077member
    In some states, people can save a few bucks on sales tax by ordering on-line. From my experience, the sales tax collected on-line by Apple is about half of what it is when purchasing in a local retail store (including Apple stores of course). (Maybe somebody here can explain the applicable laws?)
  • Reply 13 of 59
    leptonlepton Posts: 111member
    I'm waiting for that 3G model I ordered to arrive, and it's killin me! Get that thing on the truck, guys!
  • Reply 14 of 59
    I wonder how many of the sales are from people who originally planned to get the 3G, but couldn't control themselves.



    "I need my iPad fix...NOW."
  • Reply 15 of 59
    In opening up pre-orders for the iPad last month, Apple limited consumers to just two units even if the additional units were being shipped to different individuals across the country. Education customers, especially those ordering through their representatives, weren't hit with the same restriction, however.



    Ed customers could order as many as they wanted to because Apple had no intention of shipping them for the April 3 release. We pre-ordered just like everyone else and yet inside sales reps are still claiming that orders will not be fulfilled until late April or early May.
  • Reply 16 of 59
    aizmovaizmov Posts: 989member
    Quote:
    Originally Posted by 8CoreWhore View Post


    I think analysts will be surprised by how many people are waiting for the 3G model.



    I'm waiting for the 3G, not that I can get the iPad WiFi.
  • Reply 17 of 59
    davegeedavegee Posts: 2,765member
    Posted this in another thread but it's a better fit here... This was in response to last weeks article where Apple announced 450 iPads have sold as of ... Thursday AM west coast time I guess...



    Lets make this simple...



    Saturday 300k 1st day (includes pre-orders)

    Sunday (Easter not really a 'retail day')



    Monday + Tuesday + Wednesday = 150k (making 450k total)



    150k / 3 = 50k per day



    50k / 24 = 2083 per hour



    2083 / 60 = ~35 per minute



    Or apx. 1 iPad sold every 2 seconds since the release.



    Question is, can that pace continue?



    To reach 10m sold in 1 year they need to maintain sales of apx ~1141 per hour at present they are tracking almost twice that AND 3G models AS WELL AS INTERNATIONAL models haven't yet shipped. These numbers are very early in the game so anything is possible but... I'm thinking 10m might not be that big of a stretch.
  • Reply 18 of 59
    tbelltbell Posts: 3,146member
    3G could be more popular. It will offer more uses, like a sweet GPS unit.
  • Reply 19 of 59
    SpamSandwichSpamSandwich Posts: 33,408member
    Quote:
    Originally Posted by DaveGee View Post


    Posted this in another thread but it's a better fit here... This was in response to last weeks article where Apple announced 450 iPads have sold as of ... Thursday AM west coast time I guess...



    Lets make this simple...



    Saturday 300k 1st day (includes pre-orders)

    Sunday (Easter not really a 'retail day')



    Monday + Tuesday + Wednesday = 150k (making 450k total)



    150k / 3 = 50k per day



    50k / 24 = 2083 per hour



    2083 / 60 = ~35 per minute



    Or apx. 1 iPad sold every 2 seconds since the release.



    Question is, can that pace continue?



    To reach 10m sold in 1 year they need to maintain sales of apx ~1141 per hour at present they are tracking almost twice that AND 3G models AS WELL AS INTERNATIONAL models haven't yet shipped. These numbers are very early in the game so anything is possible but... I'm thinking 10m might not be that big of a stretch.



    I think you need to factor in a decelerating sales curve after the initial release. My non-scientific guess is they'll sell about a million units shortly after the 3Gs are released.
  • Reply 20 of 59
    masternavmasternav Posts: 442member
    Yep that thar iPad just a big iPhone, iPod Touch don't got enuff (or eny reglar USB) ports, don 't got no BlooRay, don't got HDMI, don't got no fizzical keyboard.



    Yep major FAIL on that thang. Apple sure blew it. Ain't no demand fer such a dumb dee-vise. Yep That thar HP Slate, n that thar COORIER, n That nice lil ol' WeePad made over thar in Ger-Many.



    Yep. Apple.FAIL-FAIL-FAIL-FAIL!





    This has been a test of the AI emergency sarcasm system. If actual sarcasm was required you would have been temporarily redirected to Gizmodo for the duration of the emergency. Once the need for sarcasm was over you would be returned to your regularly scheduled AI thread.
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