07/25/2008, 10:40am, EDT
Friday, July 25th
Analysts: Low iPhone stocks a good sign
The continuing low stocks of iPhones at Apple and AT&T stores are a good sign for the former company, argues a strategist from AMR Research. Kevin O'Marah claims that Apple in fact has one of the best physical supply chains in the world, and so if stores are in short supply, the problem is not endemic to Apple's strategy. "I don’t know whether it’s a specific component, but the root cause is tremendous demand," says O'Marah.
Apple's speed is normally said to be dependent on integrating the physical and digital supply chains, although the latter failed on July 11th, leaving many people unable to pick up a phone that day or even for the next several days.
O'Marah also notes that the situation sits in stark contrast to the original iPhone launch in 2007. While there were significant lineups at the time, Apple had plenty of stock available, to the extent that people could enter an Apple Store the day after launch and pick up a phone without waiting. In 2008 the company may have difficulty shipping enough phones to reach its goal of 10 million in sales. "I’d think they need to ramp up their supply," O'Marah comments. On the topic of Apple's push into 70 countries, he adds that "if they can sell a lot in core markets, then going to Herculean lengths to sell in other countries is more a strategic or marketing move."
Filed under: iPhone, Investor, industry, Apple
Other story tags: iPhone 3G
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Not if dealing with AT&T
Apple Fan boy since 1976. Have owned every machine since then. This AT&T thing is a debacle. Makes me sick to my stomach. It must be costing stock holders billions. Have four iphone family accounts. I have to march every one of them to a store to get the new phones. One was lost but cannot replace it. They keep charging account, however. AT&T clerks are jerks. Unfortunately we live in an Apple store dead zone. Looks like a trip to the big city.
No it is not good
It is much better (ask Nintendo) to have stock to sell while demand is high.
How many people who need new phones, and cannot get an iPhone, will just buy another phone?
How long before the "next" great thing, piques everyone's interest? ATT's poor support does not help much, but not having stock to sell is rarely a good business practice.
How much more money could Apple and ATT have made if they had 50% more stock?
strong demand
dynsight, what they are gauging is demand, and by that yardstick the iPhone 3G holds a lot more public interest than the first one. Did people go and buy a PS3 for their kids because the Wii was sold out? No, they waited and hunted until they found one. I'm not suggesting this is a good strategy, but the iPhone will only get more tempting for potential customers as the firmware/software matures.
I hear ya home slice
How many people who need new phones, and cannot get an iPhone, will just buy another phone?
Yeah, that sounds like me. I went to the Apple Store to buy an iMac and they were out so I just marched right out to the little Dell stand in the middle of the mall and bought one of those. TAKE THAT APPLE!