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iPod Sales Strong Despite Resupply Issues

iPod Sales Strong Despite Resupply Issues

by , 8:45 AM EST, December 5th, 2005

iPod inventories are strong, but only at the Apple Store, according to a Piper Jaffray follow-up report. Despite the limited availability in some retail stores, analyst Gene Munster expects iPod sales to remain strong, and that they may exceed his expectations.

The Piper Jaffray report compared ten Apple retail stores, and 11 third-party retailers for on hand iPod inventory over Thanksgiving weekend, and again on December 1 and December 2. The second study also included an additional nine third-party retailers. In both cases, Apple's own retail stores had a larger selection of iPods available than the third-party retailers.

Over Thanksgiving weekend, eight of the ten Apple stores surveyed had all of the iPod models in stock, and that all of the 11 third-party retailers were missing at least some of the models. Several of them, in fact, were completely sold out of their entire iPod inventory.

In the follow-up survey, eight of the ten Apple stores again had the full iPod product line in stock. Third-party retailers, however, were having trouble getting their stock replenished. Only two out of the 20 retailers had all of the models, but they were still missing some colors. 17 of the 20 were missing at least on style of nano, and 15 of the 20 were missing at least one style of the video capable models.

Based on the study, Mr. Munster expects that some of the iPod sales estimates for the December quarter other analysts are making are too high. He is predicting total iPod shipments to hit 9 million units, but feels Apple may be able to over shoot that number by a small margin.

The iPod is expected to remain a top-seller, and maintain its position as the market leader in digital music players. Mr. Munster is predicting that more than 37 million iPods will ship by the end of 2005, and that those sales will fuel the iPod "halo effect," exposing more and more Microsoft Windows users to the Macintosh.

Apple is currently trading in the pre-market at US$72.25, down 0.38 (0.52%) from its Friday high of $72.63.


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Guest
Subject: iPos supply

Gee. What's this little study tell you about how Apple treats it's dealers? Can anyone say unfair trade practises?

Close Name:Guest
Subject: iPod supply

Gee. What's this little study tell you about how Apple treats it's dealers? Can anyone say unfair trade practises?

Close Name:Guest
Subject: iPod Supply

Not to say the Apple is without fault, but there is always the possiblility they simply didn't order enough or have not made it though some of the larger companies supply chain. Having been involved in retail electronics for the last 20 yesrs, you don't want to order 200 of a product and only sell 50.

Close Name:Al Swearengen Posts: 339 Joined: 10 May 2005
Subject: About as much

Quote
Guest wrote:
Gee. What's this little study tell you about how Apple treats it's dealers? Can anyone say unfair trade practises?


How well did the 3rd party stores treat Apple? Many of them pushed Windows computers and other MP3 players while disparaging Apple. Not to mention they had the Apple section of the store tucked away in a far corner where it was neglected. Now that the iPod is ruling the roost, they want Apple to be their new best friend and indeed have spruced up the Apple section

Furthermore, it has been my experience that shopping at an Apple retail store makes you feel like a very important customer no matter how small the purchase. I have also felt that way at some of the very Apple-centric 3rd party stores. I have not always been treated that way at multibox stores, there are exceptions of course.

Close Name:acdc1174 Posts: 723 Joined: 16 Apr 2004
Subject: Re: About as much

Quote
Al Swearengen wrote:
Quote
Guest wrote:
Gee. What's this little study tell you about how Apple treats it's dealers? Can anyone say unfair trade practises?


How well did the 3rd party stores treat Apple? Many of them pushed Windows computers and other MP3 players while disparaging Apple. Not to mention they had the Apple section of the store tucked away in a far corner where it was neglected. Now that the iPod is ruling the roost, they want Apple to be their new best friend and indeed have spruced up the Apple section

Furthermore, it has been my experience that shopping at an Apple retail store makes you feel like a very important customer no matter how small the purchase. I have also felt that way at some of the very Apple-centric 3rd party stores. I have not always been treated that way at multibox stores, there are exceptions of course.


What he said.

Close Name:Guest
Subject: third party resellers/dealers

Why should Apple have to supply all sellers of their product equally? It's their product. They are putting themselves at risk by operating their own chain of retail stores. Are third party retailers sharing in this risk? In a word, 'no'. They are benefitting from the opportunity to make a profit off of a product that Apple spent millions of dollars to bring to market, and Apple continues to spend millions on product development, advertising and working with other suppliers of products that enhance the value of their product. Your parents raise you until you are 18 years of age. They don't owe you an allowance for life. Apple doesn't owe it to 3rd party resellers to supply them with product, when doing so would starve their own stores of that very same product. If you like corporate socialism, go live in Europe. They've got lots of it over there. I'm sure you are Mr. Marx will be very happy together.

Close Name:Guest
Subject: Apple has better supply chain mgmt than Dell

It is very likely that Apple's ability to predict demand is far better than your average retailer. Apple has consistently had better supply chain management than Dell over the last 2 years and Dell is very very good. It doesn't have to a conspiracy.

Close Name:Guest
Subject: Apple screws loyal retailers

I've been a die-hard Apple fan since the early 80s and now have many friends and business associates who work for a Mac-only store that has been in business since the early 90s. Even when Apple was looking like it was headed for the toilet this small locally-owned retailer stuck with them and evangelized like crazy. It was these mom and pop stores that kept Apple afloat long enough for them to finally make some good business moves and become the company you see today.

I can tell you first hand that Apple consistently delays shipments to this 3rd-party store, sometimes leaving them without ANY stock of popular models for WEEKS while ALL THREE local Apple stores are fully supplied. Frequently even national chains like Best Buy have received stock first. Oh, and they're opening a fourth Apple store in 2006.

I still love Apple and will to the day I die, but the way they treat their retailers just makes me sick and ashamed.

Close Name:Guest
Subject: Origins of Apple Retail

I do think Apple should supply many 3rd party retailers better than it does. Originally these were the only places you could see and buy Apple products. Often experiences were hit and miss, but Apple needs to do better with the good iPod/Mac retailers.

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