Low iPhone stocks a plus?

The continuing low stocks of iPhones at Apple and AT&T stores are a good sign for the former company, argues a strategist from AMR Research. Kevin O'Marah claims that Apple in fact has one of the best physical supply chains in the world, and so if stores are in short supply, the problem is not endemic to Apple's strategy. "I don’t know whether it’s a specific component, but the root cause is tremendous demand," says O'Marah.

Apple's speed is normally said to be dependent on integrating the physical and digital supply chains, although the latter failed on July 11th, leaving many people unable to pick up a phone that day or even for the next several days.

O'Marah also notes that the situation sits in stark contrast to the original iPhone launch in 2007. While there were significant lineups at the time, Apple had plenty of stock available, to the extent that people could enter an Apple Store the day after launch and pick up a phone without waiting. In 2008 the company may have difficulty shipping enough phones to reach its goal of 10 million in sales. "I’d think they need to ramp up their supply," O'Marah comments. On the topic of Apple's push into 70 countries, he adds that "if they can sell a lot in core markets, then going to Herculean lengths to sell in other countries is more a strategic or marketing move."

by MacNN Staff