Apple's massive 'iPad 3' air freight deal with DHL shaking up shipping rates

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Comments

  • Reply 61 of 73
    Quote:
    Originally Posted by Dickprinter View Post


    I've been asked if I print gay porn.



    So don't leave us HANGING, what's the answer?

    Actually I was thinking it had something to do with intimate tattoos, ouch!
  • Reply 62 of 73
    jeffdmjeffdm Posts: 12,951member
    Quote:
    Originally Posted by AppleInsider View Post


    When the first iPad debuted in 2010, Apple utilized UPS for Saturday deliveries, even though UPS does not offer standard delivery on weekends.



    It costs mere mortals $12 extra to buy Saturday delivery.



    Quote:
    Originally Posted by alcstarheel View Post


    The reason it doesn't cost more around Christmas for FedEx and UPS is because they have planned for the extra capacity needs. They know that around those holiday times they will need to "dust off" their freight. I doubt Apple gave DHL a heads up two-three months in advance that they are going to be shipping a lot of goods this week. They probably told them last Friday.



    But Apple does seem to plan that far ahead a lot.
  • Reply 63 of 73
    charlitunacharlituna Posts: 7,217member
    Quote:
    Originally Posted by AppleInsider View Post


    that shipping company DHL is prepared to handle massive shipments from Apple.



    Prepared for is not the same as contracted for.
  • Reply 64 of 73
    dickprinterdickprinter Posts: 1,060member
    Quote:
    Originally Posted by diplication View Post


    So don't leave us HANGING, what's the answer?

    Actually I was thinking it had something to do with intimate tattoos, ouch!



    My name is Richard and I'm a third generation printer. Sorry if the answer is anticlimactic.
  • Reply 65 of 73
    charlitunacharlituna Posts: 7,217member
    Quote:
    Originally Posted by OriginalG View Post


    . Though the lines are problematic, they do generate headlines in newspapers everywhere, drawing more attention to the product and brand (free advertising!) and generating even more hype.



    But does Apple really need the headlines or the hype. Are they worth more than cutting off the riot causing line scalpers by not giving then as much time to get ready for the game.



    I would say no which is why I think that Apple could put a quick turn around (not same day but perhaps next) with no pre-orders and some kind of by reservation only for the first week or so. Even with that there would still be lines on launch day because folks want that iPad they have reserved NOW so they can maximize their play time
  • Reply 66 of 73
    dappledapple Posts: 44member
    See an iPad HD retina display and touch an iPod touch HD?



    Would operations and logistics genius Tim Cook pay a premium for shipping a planned product?



    Just asking.
  • Reply 67 of 73
    jeffdmjeffdm Posts: 12,951member
    Quote:
    Originally Posted by orthorim View Post


    Argh... regret to have read this, non-news... how else would the iPads get here from China? A catapult?



    Of course not, but if it is causing short-term price increases for package shipping, that is interesting, as that doesn't happen often. I've never seen that happen.



    Quote:
    Originally Posted by charlituna View Post


    But does Apple really need the headlines or the hype. Are they worth more than cutting off the riot causing line scalpers by not giving then as much time to get ready for the game.



    I don't think they need lines, but the riots are pretty rare.



    I'd hope they don't encourage lines, to do that is pretty cynical in my opinion.
  • Reply 68 of 73
    Quote:
    Originally Posted by CityGuide View Post


    Were physical planes the only consideration, this would be easier. DHL is probably the largest foreign air freight operator in China. They have freight loading rights in over 300 cities in China, so moving goods out of that country is less an issue for DHL than for many other carriers. Even most passenger airlines are not allowed to load non-passenger cargo (freight) except in a few Chinese cities. Tim's buying up a large portion of DHL's available capacity even for a short period will force other manufacturers/buyers of good to weigh the costs of delaying shipments, moving them overland to a port where a carrier has rights and capacity, or even paying cancellation fees until a favorable window opens. Then there is the matter of distribution from DHL's U.S. hub. Several incoming planes full of iPads will probably stuff the re-distribution channel to destination cities, leaving less room for other cargo. To ensure all this capacity exists Apple would have to prepay fees ranging from landing slots to to ground handling. They may even pay extra to ensure customs and carrier agents are on hand as soon as the plane arrives at the terminal. Most significantly, they may have paid DHL to have a plane on standby just in case a shipment from Foxconn or wherever is delayed, allowing a partially-full flight to leave to ensure product is delivered. This eats up a landing slot plus crew time, but Apple has the means and desire to pay for it. My bet is with Tim Cook overseeing the process such a plan, if it exists, is never put into effect.



    Add to this the turn-around of the planes back to China for the next shipments...



    IDK if there are enough air shipments going back to China to pay for the flights back...



    Certainly Apple and DHL plan on a ramp up (before announce), a peak (for days or weeks of initial backlog) and a ramp-down (as the supply chain is filled).



    This is complicated as additional destination countries are brought online.



    I suspect that Tim's iPad Numbers spreadsheet is going to get a real workout over the next several months
  • Reply 69 of 73
    Quote:
    Originally Posted by OriginalG View Post


    With the original iPad, some of my friends were not booking any meetings for themselves the day of the announcement, just in case Steve said "Available...NOW" so they could drop everything and head to the closest store to buy whatever Apple announced. They considered taking the day off and follow the announcement inside a store so they can be "first!".



    If they ever did "available NOW" for any major product release, there will be a mass exodus of people from their jobs during the day just to be first. A sudden onset of some kind of sickness in order to take the afternoon off.



    Waiting a month can't be that hard!



    When with IBM, I used to hold/attend meetings in NYC. You could never plan a meeting before 11:00 (10:30 earliest) -- because none of the New Yorkers came to work before 10:00.



    On Wednedsay, maybe New Yorkers, will leave work early and stop by the Grand Central Station Apple Store on the way home...



    Can you imagine the chaos \
  • Reply 70 of 73
    Quote:
    Originally Posted by kent909 View Post


    I'm with you. Fuel costs are more logical. Although that picture of a DHL airplane is awfully compelling. I just love the frenzy as it lathers up.



    Yeah... I wonder about that!



    AIR, during the last fuel shortage/price spike -- many airlines removed the hundreds of pounds of paint from each of their planes to conserve fuel costs...



    What happened? It will take a lot of iPad flight bags to offset the weight of paint on the planes...
  • Reply 71 of 73
    dick applebaumdick applebaum Posts: 12,527member
    Quote:
    Originally Posted by dapple View Post


    See an iPad HD retina display and touch an iPod touch HD?



    Would operations and logistics genius Tim Cook pay a premium for shipping a planned product?



    Just asking.



    You betchum Red Rider!



    I can think of several reasons:



    1) Cash Flow advantage Several $ billions -- several days/weeks early



    2) Backup plan to meet a [firm] desired delivery date -- when encountering manufacturing delays



    3) Demonstrate Apple's logistics/supply chain capability to resellers/customers/competitors -- massive rollout to multiple destinations -- on time



    4) Competitive advantage -- fill the channel (as soon and as much as possible) with the device everybody will be talking about and buying... If you buy an iPad 3 in March, April... you'll be unlikely to consider any competitive offering for at least a year... rinse, repeat...



    5) Pre-empt announced competitive tablets (WOA? ICS HD?) planned or in development.



    6) iPad 3 available for Tax Refund season





    I believe that iPad 3 will come with some deliverables like Siri, HD video streaming, file sharing/management, pro-like apps, iCloud integration, etc. -- that the competition will not be able to match regardless of the "specs" they throw at the wall.



    If Apple can build/sell 5-10 million iPad 3s per month, what will the competition do -- how can they catch up... Ever?



  • Reply 72 of 73

    After reading the article I think this the planned strategy behind otherwise apple is premium client DHL and its look some thing very tricky

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