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Apple Admits Watch Shortage Due To Defective Supply, Not Demand
Apple fan-boys have proclaimed the Apple Watch a screaming success as Tim Cook explained he was "generally happy" with the launch. The big driver of the impression of awesomeness was how hard it was to get one... i.e. so much demand that supply copuld not keep up. However, as The Wall Street Journal reports, it was not demand, it was instead defects that forced the company to limit supply.
It's been weak post-earnings...
And getting worse in the after-hours...
Apple Inc. is said to have found a defect in a key component of its watch during production, forcing the company to limit supply of the new device,. As The Wall Street Journal reports,
A key component of the Apple Watch made by one of two suppliers was found to be defective, prompting Apple Inc. to limit the availability of the highly anticipated new product, according to people familiar with the matter.
The part involved is the so-called taptic engine, designed by Apple to produce the sensation of being tapped on the wrist. After mass production began in February, reliability testing revealed that some taptic engines supplied by AAC Technologies Holdings Inc., of Shenzhen, China, started to break down over time, the people familiar with the matter said. One of those people said Apple scrapped some completed watches as a result.
...
Apple last week told some watch suppliers to slow production until June, without explaining why, according to people familiar with Apple’s supply chain. Suppliers were surprised because Apple recently said that Watch inventory was insufficient, these people said.
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On Monday, Apple Chief Executive Tim Cook said “demand is greater than supply” for the Watch, but didn’t disclose sales or orders.
In a memo to retail-store employees earlier this month, Apple retail chief Angela Ahrendts said stores won’t get watches to sell until the end of May because of “high global interest combined with our initial supply.” New online orders will be delivered in June, Apple says on its website.
Which is true of course when you only have a handful to sell...
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The defect was the watch couldn't tell what time it was.
<And does anyone really care?>
The defect is that it's a watch.
The truth is that North Korea hacked the systems of the company producing the parts and that is why the part sucked.
Apple watch will be a *smashing* success, just watch. Eek, two puns in one sentence.
pods
Sit in front of a computer for a large part of the day, no clock on that thing. Port my cell around as I move, but no clock on that thing either.
Sounds like I'm in the markit for a watch, but since supplies are low, I'm sitting on the sidelines with all my cash just waiting for the right time.
NO clock on your computer or mobile? LOL. thats funny shit.
Everybody that bought one 'accidentally' dropped it on the ground & smashed it. Demand doubled. Paul Krugman is the toast of the town!
This is a major setback for the iPorn industry....
Perhaps you could suggest the i-clock to Tim Cook. It could double as a computer, or digital picture frame.
I am waiting for the the Apple dildo. You stick it up your ass and it projects a safari search bar out your ear.
"Demand" ... lol ...Tim, you sell out of your own branded storefronts, and you can easily "demand" open-shelf promotional distribution in agreements with tech outlets already carrying your other iProducts. has anyone any data on pre-orders? That's what I thought!
the defect is it's an apple* (*= planned obsolescence ) product.
Sony did that....well till people stopped buy Sony.
Apple admits the iwatch is a piece of shit and a gimmick for the apple junkies, also refereed to "suckers" in other circles not know to said "suckers".
I freelance over th? internet and earn about 80-85$ an hour. I was without a job for 7 months but last month my paycheck with big fat bonus was $15000 just working on my computer from my home for 5-6 hours. Here's what i have been doing... www.globe-report.com
Keep production low. Tell investors and the world you sold out on day 1. Create artificial interest in a shit product.
Sounds like a plan
If there's a shortage of apple watches, there's a surplus of idiots.
Stumble number three I have counted just today for next quarter GDP minus the channels stuffing....
"Apple Inc. is said to have found a defect in a key component of its watch during production, forcing the company to limit supply of the new device"
That key component being the concept, right?
Or the consumer of said device is defective.
Don't they just give you a free iWatch when you buy TSLA?
Priced to perfection is never long lasting.
Who gives an iFuck
Oh yea there was a big stumble last week too... Four minus channel stuffing eating up q2 IF it where good!!!! Off a cliff if not....
Non small stumbles!
I'm a fan boy who watched ZH be wrong over and over as to apple - and seems to have a real hard on against it.
Which I just don't get - all of a sudden a giant corporation figuring out how to avoid Americna corporate taxes is bad? Are they the only company building their shit in China?
What is it?
Tell you what, the "fanboy" arguments stopped being interesting 3 years ago.
How about circling back in 1, 2, 3, 6 months to see if the stock is up or down?
Sell your apple.
Sell.. the Precious!!!
...ahem. The watch will be okay because the American people are well trained to spend money they dont have on shit they dont need. The watch will be like really nice sneakers for white people.
I'll be waiting for a price drop and second gen. A hologram for my porn would also be desirable - no way I can look at porn on a screen that size, even when I got a chubbly going.
Whether the watch is a good idea has nothing to do with apple. I use mostly all apple products, and like apple, but still think it's a shitty idea and it won't sell.
I thought so too, but I'm softening. People are continuing to spend.
You think Beats by Dre makes the best earphones, or Mercedes makes a better car than Ford these days?
I use a Samsung phone and tablet myself.
The real sexy here is going to be the new demands/challenges of the OS.
Mr. Delicious Consumer. Yummy.
that turquoise colored wristband has your name on it
maybe I have something with your name on it.
It is easier to thread a camel through the eye of a needle than an APPLE addict (aka 'CONSUMER') to realize the TRUTH of existence...
Apple is the largest company in the entire world, thus, is the one prone to the attacking. When you lead by deplorable example, the crosshairs are on you.
lots of dvs from people who, I'd wager, know much much less about the tech than I do but have even stronger opinions.
Fuck all yall bitches, as it were.
You're wrong, but by all means - vote with your pocketbooks.
Its not Apple so much as it is the MORONS who worship it. If 5% of the people who worship APPLE would instead go inwardly and figure out why the world is corrupt---and resolve to correct it, the problems of injustice, violence, inequality, etc., would be eliminated. Much easier to drug yourself into a stupor with the latest fad than to confront the human condition straight up...
Won't disclose sales is always the sign of a hit, especially with the tepid doublespeak following.
Millennial speak. What else can you do with a modern degree?
I - Watch is creepy. Hope they get sued for product discrimination by just one sonuvabitch with no arms.
...or Flava Flav
Or the coo-koo up there in the coo-koo clock.
Or ceiling kitty.
or blind
When does the ap come out that projects in Holograficatm like they had in Star Wars in 1977?
holograms plus 3d printing - the keyboards out there are getting better...
http://www.thinkgeek.com/product/1631/
Some sort of hologram Siri is probably 4/6 years away.
http://www.wired.com/2015/04/the-apple-watch/
defective "tapping" sensor?
how about just tell the friggin' users to drop it on the floor instead of tapping it?
When the "tapping" feature created a sensation akin to the Chinese "tap torture",and the watchband constricted around the wrist,cutting off the blood flow to the hand,Apple execs knew they had a problem..
cut this constant bullying and trolling you scums.
gorge clooney elton john david soft furnishings and rock hudsons liberaces and timothy cock from apple watch are not gaymen.
WHAT THE COTTON PICKIN HELL HAS ARSE ANALISM GOT TO DO WITH ICE COOL SATURN TIME KEEPINGS.
these mens all love woman and are butch and tough like the apple fbi licenced watches
the very concept of cia kill dosing jobs for control of his company is wacky.
al gore wants us to buy the watch so we will nose when it gets hotter and colder and working out the global warmings taxes
Elton John and Al Gore no less. And I was wondering who would go out with this fountain of faggorty strapped on him.
This watch is great.
Play haptic Angry Birds during a horrible meeting and you'll know what I mean.
we lied a few people!
I call PEAK!
fuckingtosh
not a lot of "techies" here at ZH, eh?
jeebus.
ZH techies - more than you might think - just not impressed by a company that churns out bog standard intel chips running some dodgy copy of linux in a laptop with shit thermal properties and a huge pricetag and then drops this non event on the market to much fanfare and tedious bullshit whilst we know that, even though this mcguffin is thus far a non-starter, we'll still be wading through streets awash with the warm semen of unbridled fanboy lust that represents nothing more that an undignified blind scrabble for status and identity by way of sub par mass produced landfill pukeware.
I will concede to you contrary gentlemen, and the Tylerses, that I am troubled by the fact Jimmy Kramer is recommending APL
http://www.thestreet.com/story/13098754/1/jim-cramers-mad-money-recap-ap...
On the one hand, if you are going to be in tech stocks, APL is something you just have some of, and -relativity' is important, but it is over-priced like just about everything else.
Here's the kicker - they are over-valued *less* - relatively - than A LOT of other shit...
I see the pimples, but I can see the face, too.
Bitchez.
strikes me as something that belongs in a Cracker Jack box
TIMEX
TAKES A LICKING AND KEEPS ON TICKING
company keeps on ticking after 150 years or so
WWI-redesigned the pocket watch into the wristwatch
1992-came up with Indiglo
A friend of mine once said "you don't lick an apple, you bite into it"...
Looks like Cook is looking for Applesuckers.
Another NSA device to monitor ur movements
(And strike you down with a drone whenever )
oh stop your pussy boy whining Tyler, and admit you own a $10,000 Rolex, with a chip that has a back door in it....