Always a nice problem to have. With a feedback like this from the market demand, I am sure Apple will be ramping up to level out with the demand in the coming quarters. Goes without saying, how essential it is to secure the supply chain. The procurement chiefs at Apple must be on the edge after the Japan Quake. Hopefully, it doesnt put off the supply-demand gap too much for the fanatic seekers of ipads to handle.
The supply/Demand problem with apple is really a good problem. It is an indication that apples product is generally accepted as the need of the hour in today's technology. It is also an opportunity for competitors to think of how generic products can snatch some of these demands if apple can not handle the level of the turn outs.
Eldredge, You are right. There are no easy answers but sometimes companies have to move beyond the tight resource management that has characterized the industry over the last decade to a more risk-sensitized resource management strategy. As some researchers have pointed out, the concentration of procurement and manufacturing activities in a single region of the world may make sense on an immediate cost basis but it also holds the potential for a mega-disaster if an unexpected event occurs. Will this industry hold together if a major disaster hits Taiwan, for instance? Apple is in a position where it can afford to spread out its procurement and manufacturing -- with the same company. It just has to require they manufacture in multiple locations.
What is the best solution - geographical diversification of sources for the same products? That comes at a price, and maximization of profit benefits from minimizing costs. Sometimes there just isn't an easy answer.
Your comment about Apple is an enviable problem "it was unable to manufacture enough iPad tablet computers to satisfy pent up demand. By the end of the reporting period, many potential iPad buyers were left hanging because the company just couldn't make enough, Apple said."
I bet other OEMs are envious of Apple's current "problems", and wish they have the same problem of over-demand of goods and overflowing pockets of cash. We should however brace for the future impact of the earthquake. It sure will define the limits of money!!
It is clear now for me how the Japan earthquake has affected the electronic OEM's. Even apple can't do much about the supply chain problems since no one has predicted the earth quake or tsunami. The only solution would for apple is actually to look for suppliers who can operate even when earth is falling down. But it is not possible ot is it?
Rightly said that Apple's rival would love to have their product being in short supply. I remember that when Apple lauched iPad then there was so much skepticism as whether this is the product which people want, whether there will be any future for iPad etc. Now the situation is that the analyst are considering iPad and other tablet as a threat to PC and Notebook (which is bearing the brunt).
Since Apple has its order books full and its cash bags overflowing it will do all that is posiible to keep its production at peak levels to meet the market demands. This is seriously going to affect the smaller players or even the players in other consumer areas as their supplies are going to be affected. This can have a cascading effect on the market where other consumer electronic goods may have a short supply.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.