The situation is that Apple has not enough quantities both of iPads and iPhones 4. In such a way, the consumers’ demand is not satisfied for 100%. Besides, the company has no idea when it’s gonna be enough units and how many of them are still in shortage. Specialists assure no artificial shortage of the devices is created.
Tim Cook, Apple Chief operation officer pointed out that this shortage of iPhones and iPads, that differ considerably, is not Apple’s objective since the company does its best to fill all the orders as quickly as possible. He said that Apple had orders backlog of these units at the end of last quarter. The point is that the company didn’t manage to fill demand, and these days Apple is selling iPhones and iPads as fast as they produce them.
However, Cook noticed that Apple are not just selling iPads and iPhones 4 as they produce them, but they are working 24/7 to meet the demands of customers.
At the same time Tim Cook didn’t provide the details on what exactly caused the shortages of iPhones and iPads. He assured that the company would manage to increase producing of iProducts.
What concerns the problem with iPhones, it is rather new, and the point is that its producing is not yet up to full speed. Apple started to ramp it in June, and the volume of iPhones is still increasing.
Anyway, it cannot be said that Cook is very upset because the brand new products are in high demand nowadays. According to his words, “High demand is never a problem”.
But still, Cook cannot announce exact numbers in profits on iPhones 4 and iPads that are lost by reason of Apple’s inability to meet consumers’ demands.
iPad
It follows that the company was taken by surprise by the sales rates of iPads since COO announced that they had planned a million capacity per month for iPads. Besides, many analysts predicted that Apple would only be selling that quantity approximately for the whole year. For the first 90 days of iPad release a million devices were produced monthly.
iPad sales estimates were increased from 7.1 million to 12.9 million by iSuppli by the end of 2010. In case these numbers are true, the iPad sales rate will be put for this year at over 1.4 million per month.
iPhone 4
What concerns iPhone, Apple COO explained that the demand for iPhone 4 is really significant, and the company does its best to serve the demand. Though Cook couldn’t predict when that would happen, but he assured that everyone in the company was striving to do it. Cook was uncompromised when asked about the effects that Antenna gate had on demand.
In addition, Tim Cook informed that Apple is going to shut down producing of older models (iPhone 3GS) for promoting early adoption of newer models. The company’s goal is the promotion of the new product in the market.