The methodology has changed a bit, but the routine is simply the same. Apple announces the new iPhone, sets a date to order new iPhones, and another date is set to pick them up at the Apple Stores. What’s so special about that?
Controlling Supply And Managing Demand
Over the weekend I read an opinion piece which declared something to the effect that ‘long lines for the iPhone are an Apple marketing trick.’
In other words, Apple is using marketing gimmicks and trickery to get faithful customers, zealots all, to stand in line for hours or days, just to get a new iPhone.
Such shallow thinking explains exactly why Faux News is the top-rated news channel on TV.
This past weekend Apple sold over 10-million new iPhones, eclipsing last year’s record weekend, which, in turn eclipsed the sales records from the year before, and so on, ad nauseam.
According to critics, somehow Apple is controlling the supply and trumping up demand just to get customers to stand in line to get their previously ordered new iPhones. It’s a gimmick. The cold war Soviet Union was pretty good at a similar supply and demand method which created long lines for bread, meats, and vegetables (not to mention vodka), but for different reasons.
Ignore the drivel that the iPhone 6 launch was a marketing gimmick. In actuality, the launch was an artful blend of supply chain, manufacturing, distribution, economics and basic math. Supply was great, but did not meet demand. That explains the $4,000 iPhone 6 models on the Chinese black market.
The long lines were the result of a huge number of pre-orders and the desire for customers to pick up their new iPhones at the nearest Apple Store (or cell phone carrier; or wherever). How is the supply of 10-million iPhones on launch weekend not a good supply? Only when demand is greater.
Does any sane critic think Samsung or Google or Microsoft or HTC or Motorola or anyone else in the business of selling technology gadgets want the same problem Apple has? Seriously?
Demand for iPhone 6 models likely will remain above supply for a few months, but that’s all part of Apple’s strategy to pull the wool over the sheepish customer’s eyes, right? Match supply and demand is an age old problem for any company. Every maker of goods or services wants to increase demand, and have enough supply on hand to keep prices up, margins high, but still have happy customers.
Who does that better than Apple? This is a problem that does not need much fixing.