Someone blundered. After Apple Inc. (NASDAQ: AAPL) ran low on iPads for its overseas launch and then had to delay shipments of the tablet sold on its website, its U.S. stores are running out of the product. Apple should have anticipated the demand based on the success of the iPhone. It has sold more than one million iPads since it was launched. Apple decided not to pay upfront fees to put more iPads in its “warehouses.” Granted, the decision might have cost tens of millions of dollars, but to Apple that investment is modest.
Data provided by Bloomberg shows that “Apple Inc. retail stores in 13 U.S. cities said they sold out of all three versions of the iPad 3G, which went on sale last week, and had no information about when they will get more to sell.” The company says it is not sure when more will be available.
Apple may have made one of the most costly tactical errors in the last nine years since the iPod was launched. There is a theory that scarcity of the iPad will make owning one more desirable. It is a notion that something which cannot be had makes it more desireable
On the other hand, Apple may simply be bruising its valuable brand. Part of the company’s strength has been its extraordinary customer service. A large number of people who want to own the tablet will question the firm’s commitment to satisfying its customers.
The debate is academic. There is really no way to tell whether the delays in shipping to stores or overseas buyers will harm sales. But, it is unlikely that it will help them. People who want to buy a product will almost certainly do so if it is available.
Douglas A. McIntyre
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