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Hitachi drive supplies limit iPod mini production

updated 12:15 pm EST, Thu March 25, 2004

iPod mini production

Apple told Reuters that are the main reason behind the worldwide launch of the iPod mini: "Demand in the United States has outstripped expected supply through the end of June, the company said. Tight supplies of the hard drive at the core of the player forced Apple to delay increasing manufacturing until July, it said. 'We're actually consuming just about all the 4 gigabyte, 1- inch drives they make. As they make more, we'll get more,' said Greg Joswiak, vice president of hardware product marketing for Apple. Hitachi, which manufactures nearly all of the one-inch drives, expects to boost production to meet customer demand, Hitachi Storage Technologies Chief Executive Jun Naruse told Reuters earlier Thursday."




by MacNN Staff

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  1. Makosuke

    Joined: Dec 1969

    0

    The Last Word (Laugh?)

    Well, this establishes firmly that everybody who complained about the mini's $250 pricetag was wrong.

    The simple fact is, at the current pricepoint, Apple can't make enough to fulfill demand, meaning that if anything (according to strict economic theory) they're actually charging *too little*.

    Once they can actually produce enough (and it's not even their fault! Hitachi can't keep up with sales!) exceed demand at the current pricepoint, then they should (could) drop the price. Until then, they'd just be making the mini even less available than it already is.

    Oh, the pain of popularity.

  1. klinux

    Joined: Dec 1969

    0

    Last laugh

    Please, you are such an Apple apologist.

    "The simple fact is, at the current pricepoint, Apple can't make enough to fulfill demand, meaning that if anything (according to strict economic theory) they're actually charging *too little*."

    This is such a BS statement which means you are likley still in school (stay there!). First, as the article clearly points out, it is not that Apple cannot fulfill the demand at the current pricepoint. Whether Apple sells it at $99 or $499, they cannot fulfill the demand at ANY pricepoint because the it is Hitachi that is the limiting factor!

    As for charging too little, that is another BS. Market has already determined the efficient price of 1" HD and hence 1" HD based digital audio players at $200-$250. If what you are saying is true, what is to prevent Hitachi from raising their prices since only supply & demand can determine pricing?

    And what is this "according to strict economic theory" BS? What "strict" economic theory are you citing? Is there a "loose" economic theory that I am not aware of?

    Idiot...

  1. bighead

    Joined: Dec 1969

    0

    Well, then...

    Well, he is right that it kinda puts those who were poo-pooing the mini in the position of being wrong. Folks don't mind a little bit higher per-MB price point when it has a lower-overall price but a better sense of style and size when compared to the bigger iPods.

    iPod minis aren't for everyone. I bought one, and plan on selling it on eBay. I enjoy it, don't get me wrong, but I prefer to use my 30 GB and keep my entire collection close by. Many (if not most) music listeners aren't like me, though, and the iPod mini works quite well for them at the price. The shortage of units is good evidence of this.

  1. Drash

    Joined: Dec 1969

    0

    klinux

    I dont know whether you have any history with Makosuke, but do you really think that that kind of aggressive, offensive, graceless rebuke is the right way to rebutt another person's opinion/interpretation?

    Looks like more of a wait for me, whoever/whatever the reason :-(

  1. Lenny1997

    Joined: Dec 1969

    0

    the truth is

    The truth is most of the critics in major newspapers I read said the minis were too expensive but obviously they were proven wrong. I guess Apple was also conservative in their initial order.

  1. beeble

    Joined: Dec 1969

    0

    Hey klinux

    If Apple charged $500 for an iPod mini, demand would drop to the point where Hitachi's current ability to supply drives would exceed the demand for the iPod. Maybe Makosuke is still in school, but clearly need to be. This is Middle school level economics. The supply/demand paradigm (a word you're probably not familiar with) almost always works and this case is no exception. Jacking the price up will always decrease demand. If supply is your limiting factor (as it is in this case), by raising the price you'll eventually reach a point where demand will drop below supply. Apple is charging less than they could get, but constantly adjusting price to even out demand is more expensive (constantly changing advertising, consumer backlash against sudden price changes, nobody gas stations for the same reason).

    Apple chose a price they were happy with in the long term and it turns out that half the US is happy with it too. Klinux, you're wrong at the most fundamental level. Get your facts straight before you go and start trashing others on this forum.

  1. Guitar George

    Joined: Dec 1969

    0

    iPod Mini Comments

    Klinux -

    Why the angry tone?

    It is obvious who the so called "idiot" is here, and it's not the first poster either.

    Each and every single individual has their own right to express their perception and views of the subject matter.

    Lighten up, you'll probably live longer if you do. It's commenst like that which make reading this forum unpleasurable.

    Oh ya, I think it's really great their is such a demand for the iPod mini!

    - George

  1. porieux

    Joined: Dec 1969

    0

    demand

    if there were not enough demand, the point would be moot. this seems to be what kleenex doesn't understand.

  1. MAlan

    Joined: Dec 1969

    0

    loose economic theory

    There does exist a so called "loose" economic theory...it's called supply side economics. In understanding what drives the price of the iPod mini one has to understand the demand side of the equation too.

    I actually think the person with the first post hit the nail on the head even though the argument was simplistic. The person who rebuked the first post seems to me a bit irrational in trying to label this person an Apple apologist. I would argue that since 1998 Apple has been following a consistent pattern of trying to compete in the market place on price for a comparable performance level in each market they compete in. Just compare their laptop prices with other offernings. This has been done many times on these forums with the likes of dell and the point has been made over and over again that Apple successfully competes on price in most segments of the markets they compete in. Even if you dislike Apple you at least have to give them credit for being far better at running their business in this modern era than pre '98.

  1. Dame Scribble

    Joined: Dec 1969

    0

    True, true..

    One cannot deny the success of the ipod or the Mini, and as someone said, the shortage of the HD's is a direct result of its popularity.
    I know.
    I bought a 3G 15 gig for myself, and the gold mini for my wife. Not only was gold the only color the store *springboard media* had, but that particular Mini was the only one they had, PERIOD.
    Apple probably could tack on about $50 or so dollars more to the price of the entire iPod line, and they still would sell out...It's a great, popular product, and that's that...
    -d.

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