4 ms·

They learned from Apple to artificially limit supply so they sell out quickly, thus increasing demand in the long run. Not much else to see here.

by wilfra 14y ago

Samuel_Michon 14y ago
"Apple [artificially limits] supply so they sell out quickly" Citation needed. Whenever Apple launches a new iDevice, it sells millions of units within days. When stock is depleted that fast, that means it could've sold more if they had the inventory, and they miss out on sales because of customers choosing something that is in stock at the time.
- pbhjpbhj 14y ago
  >it sells millions of units within days // How many of those are pre-orders? My point being if they sell out but only have a small % more products than they have pre-orders for then it suggests they are indeed using scarcity for marketing purposes. Like you note there's not real point in speculating on it without firm stats.
  - Samuel_Michon 14y ago
    "if they sell out but only have a small % more products than they have pre-orders for then it suggests they are indeed using scarcity for marketing purposes." I don't think that's the case: * When Apple allows for pre-ordering, it's rarely more than two weeks in advance. * On launch day, there are always long lines in front of the Apple Stores, APRs and other retail stores that sell Apple products. The people standing in line haven't pre-ordered, since pre-orders are fulfilled by mail. * New iDevices are sold in only a few countries at launch. Other countries have to wait weeks (like mainland Europe) or months (like China and India) to get any stock.
    - rednukleus 14y ago
      Oh come on, Apple sell out every time they release an iOS product - even when they miss analysts' expectations. They are either really really bad at estimating demand (which I seriously doubt), or they are intending to sell out. It's a perfectly sensible thing to do.
      - Samuel_Michon 14y ago
        "really bad at estimating demand" I won't pretend Apple is bad at estimating demand, even though each new model sells way more units than the last. Tim Cook is famous for his inventory management [1]. I think Apple's manufacturing partners simply cannot produce enough of them (partly because Apple keeps making them harder to manufacture, partly because Apple demands the best prices). Of course, Apple could wait longer, stockpiling units for months, before announcing the products but then production units tend to leak and it allows competitors to catch up. [1] http://www.wired.com/business/2011/08/why-tim-cook/ http://www.wired.com/business/2011/08/why-tim-cook/
- wilfra 14y ago
  After decades of new products always selling out quickly, you'd think they'd be able to get their supply chain in order, but alas, the next iPhone and iPad will both be "sold out" within days. It's a very clever and effective marketing strategy, even when people know they are doing it. We want (and talk about!) what we can't have, even if the reason we can't have it is artificial. Just like a movie or TV show we can't see but which was completed months ago.

They learned from Apple to artificially limit supply so they sell out quickly, thus increasing demand in the long run. Not much else to see here.

by wilfra 14y ago

They learned from Apple to artificially limit supply so they sell out quickly, thus increasing demand in the long run. Not much else to see here.

Samuel_Michon 14y ago

"Apple [artificially limits] supply so they sell out quickly" Citation needed. Whenever Apple launches a new iDevice, it sells millions of units within days. When stock is depleted that fast, that means it could've sold more if they had the inventory, and they miss out on sales because of customers choosing something that is in stock at the time.

pbhjpbhj 14y ago
>it sells millions of units within days // How many of those are pre-orders? My point being if they sell out but only have a small % more products than they have pre-orders for then it suggests they are indeed using scarcity for marketing purposes. Like you note there's not real point in speculating on it without firm stats.
- Samuel_Michon 14y ago
  "if they sell out but only have a small % more products than they have pre-orders for then it suggests they are indeed using scarcity for marketing purposes." I don't think that's the case: * When Apple allows for pre-ordering, it's rarely more than two weeks in advance. * On launch day, there are always long lines in front of the Apple Stores, APRs and other retail stores that sell Apple products. The people standing in line haven't pre-ordered, since pre-orders are fulfilled by mail. * New iDevices are sold in only a few countries at launch. Other countries have to wait weeks (like mainland Europe) or months (like China and India) to get any stock.
  - rednukleus 14y ago
    Oh come on, Apple sell out every time they release an iOS product - even when they miss analysts' expectations. They are either really really bad at estimating demand (which I seriously doubt), or they are intending to sell out. It's a perfectly sensible thing to do.
    - Samuel_Michon 14y ago
      "really bad at estimating demand" I won't pretend Apple is bad at estimating demand, even though each new model sells way more units than the last. Tim Cook is famous for his inventory management [1]. I think Apple's manufacturing partners simply cannot produce enough of them (partly because Apple keeps making them harder to manufacture, partly because Apple demands the best prices). Of course, Apple could wait longer, stockpiling units for months, before announcing the products but then production units tend to leak and it allows competitors to catch up. [1] http://www.wired.com/business/2011/08/why-tim-cook/ http://www.wired.com/business/2011/08/why-tim-cook/
wilfra 14y ago
After decades of new products always selling out quickly, you'd think they'd be able to get their supply chain in order, but alas, the next iPhone and iPad will both be "sold out" within days. It's a very clever and effective marketing strategy, even when people know they are doing it. We want (and talk about!) what we can't have, even if the reason we can't have it is artificial. Just like a movie or TV show we can't see but which was completed months ago.