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I was wondering the other day, at what point these huge product launches make life more difficult for Apple and their suppliers vs the positive benefit (communi
by rconti 8y ago
I was wondering the other day, at what point these huge product launches make life more difficult for Apple and their suppliers vs the positive benefit (community attention, PR, etc).
You release, say, a new phone today, for sale today. It costs $800. You will keep making and selling the same device for the next 364 days (at least). Over the next year, the parts become less expensive because newer technology is always coming out. So it makes sense for the buyer to pay $800 for it today versus $800 for it in 364 days when we are 1 day away from the release of something incrementally better for the exact same cost.
In order to have large enough supply to satisfy the Day 1 demand, you have probably been producing and stockpiling the item for weeks, which has all kinds of inventory and storage costs. For the next month or three you can produce flat out to (try to) satisfy demand, but there is a backlog for awhile, which, at least in theory, harms demand/customer experience. Then, once you process the backlog, you have to scale back capacity for the next (say) 9 months, until a new product comes out.
Now, of course, there are good things about this. You can probably produce products flat-out for 4 months. You get huge internet-wide buzz, much to the dismay of those who hate hearing about nothing but Apple's Magical (TM) new products for a week or two before and after the Big Reveal. You get PR all over the internet and newspapers and TV. Some demand is almost certainly induced by the sense that if you don't buy on day 1, you might have to wait some unknown amount of time before supply catches up with demand.
So, I don't know, but I'm really curious about all of the considerations taken when making decisions like this.