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ptrowski
Got Helix?
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join:2005-03-14
Putnam, CT
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reply to skeechan

Re: Damn Man - iPhone is on a Roll!

We all speculate so no one knows for sure, but apple does love to hype the "can't keep up with demand" pat on the back all the time. One or two releases, maybe. They also know that people will wait for the phone and a small percentage will find something else. Apple fans can be loyal to a fault, so having an artificial scarcity does work. Apple could easily find other companies willing to build plants, lines etc to manufacture for them. It's a gold mine.
--
"So, Lone Starr, now you see that evil will always triumph because good is dumb."

Have you been touched by his noodly appendage? »www.venganza.org



skeechan
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1 recommendation

There is no way on earth that Tim Cook, an expert in supply chain, takes any pride in Apple not being able to deliver product. There is no hype from being sold out only bad PR from not being able to deliver product. The hype is people lined up around the corner...not from walking out empty handed. And with limited devices in the supply chain, there is no in store traffic from it (where users can be upsold) and no impulse buying.

There is ZERO benefit from artificial scarcity when you don't raise the price and in that case there is negative benefit both in lost primary sales and lost sales on the complementary goods.

Apple fans will buy it whether it is scarce or not. No hype. Non-Apple fans will go elsewhere rather than wait. No hype.

Again, there is no benefit unless they raise the price. When they leave price where it is, they simply leave money on the table if they induce artificial scarcity.



Mike
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Yeah there is.

Hype.

If you have a rare product that is supposed to be amazing, people are going to fiend over it.

It's a lot better if people are going crazy over limited supply than having a store full of retail boxes.
--
"If something about the human body disgusts you, complain to the manufacturer" - Lenny Bruce
What this country needs is a good five dollar plasma weapon.



bbarrera
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join:2000-10-23
Sacramento, CA
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1 recommendation

This is just nutty. Wall Street Journal quotes Foxconn rep ""the most difficult device that Foxconn has ever assembled." Apple sells more in the opening weekend than any other cellphone launch, by far. Yet on this thread we are too believe they are artificially limiting production. Come on, its not like anyone is capable of mass producing phones on the scale of say M&M's candy at over 400 million a day. Get real people.



Nezmo
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reply to itguy05

Okay, I'm wrong, you're right.

Now explain why Apple cannot EVER meet demand on ANY iPad or iPhone release. As for the comments about stringent manufacturing tolerances on the 5 causing problems... if Cook is the supply chain whiz he's supposed to be why did he allow that kind of thing to cause a kink in meeting the demand they knew they would have. If the dollars are more important then don't impose those silly tolerances (it's not a freaking Swiss watch) and remove that constraint.

I am just trying to understand why this genius company cannot meet the demand they create. The reasons given so far don't seem reasonable to me.
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skeechan
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4 edits
reply to Mike

There is no benefit to "hype" in itself. Benefit comes from revenues. You don't hype a product you are already selling out of. You make as many of the damn things as you can and get them to market. Anyone think they need to sell out in order to hype an iPhone. It's the most overhyped device on the planet...long before release day. Apple doesn't need to scheme artificial scarcity to promote their device.

No units = no revenues. No units /= hype. No units = lost sales. NO ONE is surprised by a first week sell out. There is ZERO hype from a first week sell out, or a second week sell out. By the 3rd week it is simply frustration.

You would be right if the few units that were available were selling for $1500 per...then sure, there is the benefit to artificial scarcity.

No one is going "crazy". They simply walk out of the store empty handed or with an S3 box in a bag.

Boxes sitting in retail doesn't mean anything. Turnover does. You can have shelves full of boxes if you have high inventory turnover. It's infinitely better to have boxes in retail than zero boxes in retail.
The former means revenue, the latter doesn't.



skeechan
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reply to Nezmo

Because demand always exceeds their sales expectations. 5M units was a record for handsets, yet it is speculated that actual sales could have been 8-10M had the supply been there.

Initial demand is higher than ongoing demand. They have to control fixed costs in the short term. They get as many units into the channel as is reasonable to preserve unit margins, not to generate hype.


andychrist

join:2005-02-12
New York, NY
reply to Nezmo

said by Nezmo:

Okay, I'm wrong, you're right.

Now explain why Apple cannot EVER meet demand on ANY iPad or iPhone release. As for the comments about stringent manufacturing tolerances on the 5 causing problems... if Cook is the supply chain whiz he's supposed to be why did he allow that kind of thing to cause a kink in meeting the demand they knew they would have. If the dollars are more important then don't impose those silly tolerances (it's not a freaking Swiss watch) and remove that constraint.

I am just trying to understand why this genius company cannot meet the demand they create. The reasons given so far don't seem reasonable to me.

The new iPad. The only lines were before the Apple Stores opened for business and started selling them, just about nobody had to walk away empty handed. There were plenty and it was considered a great triumph for Tim Cook.


ToxicDrew
Premium
join:2001-09-24

The new iPad was very well stocked at launch. The eBay scalpers had to line up and return them back to Apple because there was no shortage.
--
dream your dreams with open eyes and make them come true...



Mike
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reply to skeechan

If you're in the Apple system, why would you leave? Someone handed me an iPad mini.. uh I mean a S3 today and it's half phone half kindle. Too big.

Theres your reality distortion field in effect.

If you have a predictable base that can only grow, then your stock price is going to be insane.
--
"If something about the human body disgusts you, complain to the manufacturer" - Lenny Bruce
What this country needs is a good five dollar plasma weapon.



skeechan
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1 edit

There are lots of reasons not to buy Apple products, particularly if you don't run Macs. And the S3 isn't the only competing phone. There are the new Windows phones rolling out, certainly lots of new ICS/JB phones like the newest Razr HD Maxx with crazy battery life, something like 20 hours and the Photon; a slider with a "real" keyboard.

If you are in a Windows world, migrating away from iOS to Android or WP8 can be compelling. I have friends who see no real difference between Android and iOS because they just use it for phone/text/browse/email so to them it is whatever they get a deal on.

If I didn't use Macs, I wouldn't use an iPhone. If I was using Windows on all of my desktops, I'd be on board with the Lumia 900.


itguy05

join:2005-06-17
Carlisle, PA

said by skeechan:

If I didn't use Macs, I wouldn't use an iPhone. If I was using Windows on all of my desktops, I'd be on board with the Lumia 900.

Why? The UI is pretty nasty and ugly. The apps are not there and it doesn't integrate any better than iOS on Windows. Apple does an OK job integrating with the PC, better than Android but nowhere near what they do on Macs. But with the push with iCloud they are making that irrelevant anyway.

I wouldn't wish Windows and Metro on my worst enemy. It's that nasty.


skeechan
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Integration.

Expand your moderator at work


darcilicious
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reply to itguy05

Re: Damn Man - iPhone is on a Roll!

Interesting article on the topic:

»gigaom.com/apple/iphone-5-out-of···-sprint/
--
♬ Music is life ♬



Count Zero
Obama-Biden 2012
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join:2007-01-18
Winston Salem, NC
reply to skeechan

I don't think integration is a big problem anymore. Syncing isn't a common activity anymore but iTunes on windows works as well as OS X's version. They also have an iCloud control panel to manage other aspects of integration.



darcilicious
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said by Count Zero:

iTunes on windows works as well as OS X's version.

Which can't be saying much, can it?
--
♬ Music is life ♬


skeechan
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reply to Count Zero

It is for me. I like stuff to just work and work together. I like the potential of Windows 8 + WP8 + XBOX 360.



skeechan
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1 recommendation

reply to darcilicious

Best music library management utility I've ever seen or used on any platform. Combined with iTunes match it's awesome.



Count Zero
Obama-Biden 2012
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join:2007-01-18
Winston Salem, NC

Agree. iTunes works very well for me for managing, organizing, streaming and sharing my 16,000 song library. It's just RAM hungry - but RAM is thankfully cheaper these days.



Count Zero
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reply to skeechan

Versus the OS X + iOS + appleTV. Gotcha. Can't really comment since I never really used the Xbox for streaming.



skeechan
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Exactly...imagine an AppleTV with apps, with some sort of controller. It would be a great bottom tier game machine to compete with the original Wii (the $99 price point). I think it would bring AppleTV into the mainstream, being a game platform. I think that would do better to spur sales that trying to make it a DVR or set top streaming cable box.

Play a game on the XBOX360, then take that game with you on a high end Windows 8 phone (making WP8 a real competitor to PS Vita). Have a Microsoft version of Airplay to stream content from a WP8 to any XBOX 360, so you could hit a friend's house with a movie and watch it on their TV, etc.



skeechan
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reply to Count Zero

I leave my iTunes open and running on my Mac Pro (which serves my iTunes media) 24/7 and it's sitting at around 260MB out of the 16GB in the machine. I just opened a SINGLE browser window in Windows XP to DSLR and it's taking up 55MB. Open a Google Maps tab and that jumps to 80MB. I closed the google maps tab and RAM usage for IE actually jumped to 82MB. Dropbox on that machine is running at 80MB too.

I see similar high usage from any advanced programs handling a lot of data (Filemaker, Quickbooks, etc) on both OS X and Windows.



Thinkdiff
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join:2001-08-07
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I haven't worried about how much RAM something is using in over a year. A modern computer with 8+GB RAM and a fast SSD will do that, I suppose.
--
University of Southern California - Fight On!



Count Zero
Obama-Biden 2012
Premium
join:2007-01-18
Winston Salem, NC
reply to skeechan

Well I don't play any video games so its all meh to me!

Though ill probably buy halo 4 later.



Count Zero
Obama-Biden 2012
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join:2007-01-18
Winston Salem, NC

1 edit
reply to Thinkdiff

Indeed.

I think a lot of iTunes bad press comes from when people typically had less RAM and iTunes didn't perform well.



Nezmo
The name's Bond. James Bond.
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said by Count Zero:

Indeed.

I think a lot of iTunes bad press comes from when people typically had less RAM and iTunes didn't perform well.

That would be me. I have a 32bit Windows machine. Other than the issue it can't address more than about 3.3GB of RAM (I have 4GB in it) it's a fast quad core machine. But I admit it's now dated. It handles everything I need great (including heavy-duty video encoding) except iTunes which blows chunks to be honest.

I either need to update my main machine or get something like a Mini to act as an iTunes server.
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osxtasy

join:2008-07-03
reply to itguy05

Yeah, it's definitely on a roll, and deservedly so!


Jackarino
YacCity
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Allendale, NJ
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lol