Readers: There are now reports saying that Sharp was unable to meet its quota of iPad displays, which may account for the shortage. Assuming this is true, I have to give Apple credit for not throwing its partner under the bus (so to speak). There may be a very good reason for this: Sharp's troubles leave Samsung as Apple's primary display provider. And Apple and Samsung are embroiled in several nasty lawsuits.
@prabhakar: Going off target on sales forecast by miles is a grave problem. Although your point of adding premium through this exercise seems logical but let us just compare Apple products with its competitors. Apple is already a premium brand that charges more for its products and therefore it already has a market where price is not a major concern.
I believe that companies should try to bridge the gap in btw supply and demand. A little less supply to stimulate sales works but a faulty forecast will produce some disgruntled customers.
Going wrong on a sales forecast , this way , is good. This builds up a good image for the company, makes its brand stronger and adds premium to its price tag.
So what is wrong? . It isa better than overestimating the demand and building up huge inventories and then selling it all out at discounted prices .
i agree with @Nemos and Anna it's a common ploy taught in economic 101 called illusion of scarcity v. underestimated demand. Apple has done this repeatedly to deliberately to drive sales, often during historically slow sales periods. making consumer think they need to get on bandwagon (pre-orders) and just maybe buy more than needed. Apple pre sets total units available for pre-orders, which is not the same as a sold out scenario.
Bolaji: I saw that too. I wasn't clear, though, if Apple claimed there was a display shortage or people were just guessing at the reason. (I think it was the latter.) Either way, the problem is Apple's. There is no shortage of capacity in the display business, the chip business, the IP&E business or the EMS business that explains the shortfall. Apple blew its forecast. Or claims it blew its forecast. Again, I point to the fact Apple's CEO used to run its supply chain. Apple has released the iPad 3 times. There is no reason it missed the mark by that much.
BTW, I predicted the iPad 3 display would leapfrog the competition. Remember that $3 billion Apple spent on displays last year? Apple was well prepared for a spike in demand. There is no valid excuse for an iPad shortfall.
Barbara, A report from an analyst today refuted reports of a display shortage associated with the new iPad. The news report titled: No display shortage seen for new iPad: Jeffries makes it clear Apple shouldn't have any problems getting supplies of displays. So, what exactly explains the unfulfilled demand for the new iPad?
-Hm, by quality and configuration wise it’s superior to all the competitors. But I can get it by tomorrow also, why I have to rush it for today itself. I think it’s purely an artificial demand creating technique from business division. Similarly, why other brands are not getting any such initial pulls; that doesn’t means that such products are not superior.
Barbara, I think it’s so common with almost all Apple product release. The same initial pull was there for both IPad 1/2 and I Phone while releasing it. I am not able to get exactly, why such demands are there only for Apple products or whether “Out of Stock” is a marketing strategy.
This is the way Apple thinks and behaves. They look after their interest first and foremost. May be thier products are so good, they walk away without much harm. yes, but they should be more careful in future.
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.
Archived Dialogues
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.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
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.
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