1.7 million iPhone 4s sold from Jun. 24 thru Jun 26

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    Posted: 28 June 2010 06:28 PM #16

    You’re missing a key issue here. Having a controlled rollout, even if they lose sales keeps the numbers of first one phones that might have problems to a “minimum”. Look how many times things have come up they haven’t anticipated or didn’t see in testing. Full out production dump at introduction could’ve made these problems much worse. It’s a fine line but it might be influencing Apple’s decisions.

         
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    Posted: 28 June 2010 06:49 PM #17

    Agreed.  Let’s not forget that even though Apple has experience in this, every launch their initial sales figures get more and more ridiculous.  This kind of sales volume ($1 billion in three days?!) is uncharted territory.  Apple could throw a couple billion into making its own plants, it might be a good idea somewhere down the road, but honestly?  If Apple has a 12 million or so iPhone quarter in fiscal Q4 (62% YOY growth), how many of us here will actually be complaining that Apple didn’t make enough, and that consumers are permanently being lost to Android?  This rate of growth is barely “controlled” as it is. 

    I’m pretty sure that everyone who wants an iPhone will be able to just walk in to an Apple Store or order one online without much delay by the end of calendar Q3, as long as iPhone hasn’t recently launched in that particular country.  I believe the same held true for the 3GS.

    [ Edited: 28 June 2010 06:52 PM by Mav ]

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  • Posted: 28 June 2010 07:09 PM #18

    I’m with Chas and Mav. All the gearing up to produce 40 or 50 million in a month will drag down margins and what will you do with all that capacity next quarter? After everyone has an iPhone. And where would Apple put all the money?

         
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    Posted: 28 June 2010 08:15 PM #19

    Mike in Helsinki - 28 June 2010 09:08 PM

    I’m with Asymco.

    Look, Apple can’t seem to get its forecasting nor production logistics right for these launches.

    They have more than 40 billion bucks sitting doing absolutely nothing.  This amount will grow in leaps and bounds this year.  There is no way ... no way ... they can employ that kind of cash in the foreseeable future.  Other than earning some piss poor interest that drags down their overall employment of capital, they need to get off their ass and use it where it can do some real good.

    Why can’t they employ some of that cash to solve a recurring problem that is nothing but a negative for them?  And why don’t they kick some ass in their organization to solve a recurring problem like this?

    Don’t know that they can’t get it right, I think they have a sustainable rate of growth in mind and the average investor has trouble looking beyond the next qtr let alone the next year.  Most companies are not growing production at a 70% YOY rate in 2010.  In the smart phone market which manufactures are predecting this kind of growth? Not RIMM not Nokia.  You could argue Andriod but then they are not booking production for 2010 so you need to look at the individuals building the handset since they are taking the risk.  I agree that 40B is a bunch of cash not earning shit but the rest of the money is doing quite well compared to Google, Nokia, Rim in the last year.

         
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    Posted: 29 June 2010 01:50 AM #20

    Wow.  Maybe I should’ve bought my full allotment (?) of two iPhones (one at full price) and shopped it around to some NFL players too.

    Of course he has no obligation to, but it’d be a nice gesture if he’d sign the container or the iPhone itself when Ms. Hightower gets her second iPhone 4.

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    Posted: 29 June 2010 10:51 AM #21

    Looks like Apple may be adding another factory to help meet next years demand

    Foxconn to shift some of Apple assembly

    Foxconn is preparing to shift part of its production of Apple gadgets from Shenzhen to north and central China, amid a greater willingness from the US company to work with factories away from its long-time Chinese hub.

    The move, aimed at containing costs, follows drastic wage rises for large parts of the workforce of the Taiwanese-owned company, after a string of worker suicides and widening labour unrest.

         
  • Posted: 29 June 2010 11:45 AM #22

    Here’s a thought for Apple. Since production is the problem, how about using some of the billions in cash on hand to develop training programs, train the workers, and open some factories in THIS country? With that much volume needed Apple can afford it, can probably acquire tax credits to do it to offset most of the initial startup costs, and it will employ people here for the long haul.

    Hint, this isn’t just to Apple either. If you want us to buy your products, employ us so we can afford them!

         
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    Posted: 29 June 2010 11:46 AM #23

    My first reaction to that impressive number was “This is sure to kill the iPod Classic.”

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    Posted: 29 June 2010 12:59 PM #24

    Here?s a thought for Apple. Since production is the problem, how about using some of the billions in cash on hand to develop training programs, train the workers, and open some factories in THIS country? With that much volume needed Apple can afford it, can probably acquire tax credits to do it to offset most of the initial startup costs, and it will employ people here for the long haul.

    Foxconn gets {got~before the labor unrest and raises } $8.00 TOTAL for manufacturing an iPhone.

    The laborers got $135/month plus an average overtime of $65 for a total of of $200/laborer per month, or $2,400 per year.

    Now in the USA, that would be a LEAST $20/hour for unionized labor with benefits and taxes or a BASE rate without overtime of $41k/worker per year.

    Now apply the differential between the two, for an INCREASE in assembly costs of 1,700% work that backwards to the $8 cost to manufacture and the INCREASE would be from $8 per iPhone to $144 per iPhone just for MANUFACTURING, not counting the cost of plants and the associated start up capitalized costs.

    Now, it the cost of ALL apple products were to rise by $145/unit, and the competition continued to manufacture in Quanta, Foxconn, and the other Asian assembly plants, what do you think would happen to the sales?

    Let me give you a hint, OUCH!

    [ Edited: 29 June 2010 01:03 PM by TanToday ]

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  • Posted: 29 June 2010 01:35 PM #25

    Forget manufacturing ? how about improving efficiency in actually getting phones into people?s hands? Any other day when you go into an Apple store, you don?t wait in line for anything ? a guy or gal in a t-shirt comes up to you with a tricked-out iPod touch and rings you up for whatever you want. Is there really no other way to handle an iPhone launch than to have people wait in line for hours to be ushered into the inner sanctum, as though for an audience with the pope? How about setting up some extra POS stations? Why not just ring people up in line, provided they?re willing to activate the phone themselves at home? It seems that launch day is the one part of the retail experience to which Apple has brought no innovation at all—free bottled water doesn’t cut it.

         
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    Posted: 29 June 2010 01:58 PM #26

    Nonsuch - 29 June 2010 04:35 PM

    Forget manufacturing ? how about improving efficiency in actually getting phones into people?s hands? Any other day when you go into an Apple store, you don?t wait in line for anything ? a guy or gal in a t-shirt comes up to you with a tricked-out iPod touch and rings you up for whatever you want. Is there really no other way to handle an iPhone launch than to have people wait in line for hours to be ushered into the inner sanctum, as though for an audience with the pope? How about setting up some extra POS stations? Why not just ring people up in line, provided they?re willing to activate the phone themselves at home? It seems that launch day is the one part of the retail experience to which Apple has brought no innovation at all—free bottled water doesn’t cut it.

    The lines create buzz and lots of free advertising.

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    Posted: 29 June 2010 02:07 PM #27

    Nonsuch - 29 June 2010 04:35 PM

    Forget manufacturing ? how about improving efficiency in actually getting phones into people?s hands? Any other day when you go into an Apple store, you don?t wait in line for anything ? a guy or gal in a t-shirt comes up to you with a tricked-out iPod touch and rings you up for whatever you want. Is there really no other way to handle an iPhone launch than to have people wait in line for hours to be ushered into the inner sanctum, as though for an audience with the pope? How about setting up some extra POS stations? Why not just ring people up in line, provided they?re willing to activate the phone themselves at home? It seems that launch day is the one part of the retail experience to which Apple has brought no innovation at all—free bottled water doesn’t cut it.

    Lines and constrained supply are GOOD.

    They are evidence of a huge DEMAND outstripping SUPPLY at full throttle. Foxconn has 100,000 employees DEDICATED TO TURNING OUT Apple products right now. If that many coolies can’t keep up with worldwide demand, how is that BAD?

    It is proof positive that SALES will be excellent for the foreseeable future.

    Remember, they are churning out iPhones right now at 70% ABOVE last years record rates, not to mention the virtually insatiable demand for iPads as well.

    This bodes GREAT TIDINGS, not bad new for the bottom line.

    This morning I personally bought a new iPhone 4, 32GB. There were TEN STATIONS set up at the ATT local store, a SMALL suburban strip store. It took 15 minutes to sell the phone, change over the information on the old non-iPhone to the SIM in the new iPhone and we were on our way. It was smooth, and well organized.

    Don’t forget, you don’t have to stand in line, one can order for home delivery, but that is now backordered, and that is GREAT NEWS for us shareholders!

    [ Edited: 29 June 2010 02:12 PM by TanToday ]

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    Posted: 29 June 2010 02:08 PM #28

    Tiger - 29 June 2010 02:45 PM

    Here’s a thought for Apple. Since production is the problem, how about using some of the billions in cash on hand to develop training programs, train the workers, and open some factories in THIS country? With that much volume needed Apple can afford it, can probably acquire tax credits to do it to offset most of the initial startup costs, and it will employ people here for the long haul.

    Hint, this isn’t just to Apple either. If you want us to buy your products, employ us so we can afford them!

    Will you accept a pay check of $300 per month?

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    Posted: 29 June 2010 02:16 PM #29

    Any explanation why Apple launched two hot products, iPads and iPhone 4, so close together?  The assembly lines are tied up because of this.  Apple has underestimated the demand of these two products.

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    Posted: 29 June 2010 02:16 PM #30

    Tiger - 29 June 2010 02:45 PM

    Here’s a thought for Apple. Since production is the problem, how about using some of the billions in cash on hand to develop training programs, train the workers, and open some factories in THIS country? With that much volume needed Apple can afford it, can probably acquire tax credits to do it to offset most of the initial startup costs, and it will employ people here for the long haul.

    Hint, this isn’t just to Apple either. If you want us to buy your products, employ us so we can afford them!

    Because it is significantly less expensive to manufacture in not-USA. Think about it: the auto OEMs are profitable everywhere in the world except here in the states. What’s different? Insane entitlement programs. A fellow family member is shutting down a manufacturing line in the Netherlands and moving it to Taiwan in the runaway factory defense because increasing demands to fund entitlements meant the line was no longer profitable in the Netherlands. Eventually the cumulative effect will learn ‘em: just like money, if you tax your OEMs, they will leave.

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