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Analyst: Apple hoarding iPods for own stores

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By LC Angell

Contributing Editor
Published: Monday, November 28, 2005
News Categories: iPod

Apple is keeping the majority of its iPod inventory for its own retail stores, leaving third-party retailers without an ample supply during the busy holiday shopping season, according to one Wall Street analyst. In a research note obtained by iLounge, Piper Jaffray analyst Gene Munster commented today that Apple appears to not be sharing enough of its iPod supply with its retail partners, as evidenced by a survey conducted over the weekend.

“Over the Thanksgiving holiday, we spoke with 10 Apple stores and MP3 player sales reps at 11 third-party iPod retailers (Best Buy, CompUSA, and Circuit City) regarding iPod availability,” Munster writes. “As we had expected, we found that at Apple retail stores iPod availability was very high. Specifically, all but 2 of the 10 Apple retail stores in our sample indicated that they had all iPods in stock throughout the holiday weekend. On the other hand, most third-party retailers in our checks indicated that they were sold out of various, and in some cases all, iPods,” the analyst said. “We believe Apple is channeling the majority of its iPod inventory to Apple retail stores vs. third-party iPod retailers.”

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Comments

1

I love jumping to conlusions!  Seriously, let’s say there were 1000 iPods shipped to a local CompUSA, and 1000 iPods shipped to the Apple store.  Perhaps more people in general shop at the CompUSA, so there is greater volume of people through there, and therefore would sell more iPods. 

Just because the third-party stores are sold out doesn’t mean they got fewer iPods… Perhaps they just sold out faster.

Even if Apple is shipping more to their retail stores: so what?  Good for Apple.  Shopping for an Apple product at an Apple store is 10x better than dealing with the morons at CompUSA or Best Buy.

Posted by m.sherman on November 28, 2005 at 11:05 AM (PDT)

2

I have to say that this is not just limited to the US or to iPods themselves.  It appears that Apple’s restrictive practices stretch to buying up all stock of any product that is popular such as highly rated speaker systems so that they can sell them at their much higher prices.

They do this with their Apple branded accessories too, but obviously they have a right to their own stock but when restrictions are placed on their suppliers to give us all your stock or we wont feature them, it puts the manaufacturers of the add-ons that make the ipod market and subsequently the iPod so attractive.

Is the 10% Apple tax not enough for them?

Posted by d graham on November 28, 2005 at 11:13 AM (PDT)

3

Just be glad Apple doesn’t do what Dell does and sell everything direct themselves online with no third party resellers or retail stores.  Seeing as how Apple makes the iPods, it is their right of course (and a smart business move) to send most of them to their own stores.

Posted by SJR on November 28, 2005 at 12:10 PM (PDT)

4

More power to Apple. They can make more money selling direct.

Posted by Ian on November 28, 2005 at 12:38 PM (PDT)

5

I read this “news piece” and all I could think was, “Well, DUH!”.

Posted by Code Monkey in Midstate New York on November 28, 2005 at 1:34 PM (PDT)

6

So?  hahaha.  I mean, is it not to be expected they would want to sell in this fashion?  I agree with Code Monkey. *lol*

Posted by Jing on November 28, 2005 at 2:38 PM (PDT)

7

I am trying to find a 60gb 5G in black but everywhere is sold out :(

Posted by podrek on November 28, 2005 at 4:42 PM (PDT)

8

Wow!  What a truly scientific survey.

Posted by The Raven on November 28, 2005 at 4:56 PM (PDT)

9

SO lame of Apple. Oh & there are plenty of morons working at Apple store too.

Posted by I Luv My Pod on November 28, 2005 at 6:54 PM (PDT)

10

i thought they called themselves geniuses, not morons

Posted by chris on November 28, 2005 at 7:37 PM (PDT)

11

I’ve got to say that this example of consumer exploitation holds true in my part of the country as well; It just goes to fuel my anti-apple sentiment. The only thing I’ve ever bought from them is the Nano, but I’ve got to say that it is pretty awesome. Other than that, the computers blow and the mice are just retarded. Wtf, where’s my right click!?

Posted by Michael on November 28, 2005 at 9:04 PM (PDT)

12

How did this make news? People are surprised by this? It’s their own product. They have the right.  as has been said.  “duh”.

It would be a totally different matter of course, if they restricted third-party retailer supplies on a launch day. While at the same time not having any stock themselves (altho, at least you can buy products on launch online if you want). OR if there was no corporate brick and mortar outlet to buy the product.

Which would be a lot like, em, an un-named company that starts with Micro and ends with soft. No, I’m not angry about the Xbox launch day tactics. Of course not.

As for Apple.? who cares, call your local FutureShop (yes, it’s in Canada) and check stock (or look online). If no luck there. Go to an apple store. or order it online.

Posted by and? on November 28, 2005 at 10:19 PM (PDT)

13

Wow!  Did my comment get deleted..?

Posted by Talking Madness in Los Angeles on November 28, 2005 at 11:33 PM (PDT)

14

i think the reason why they sell faster in other stores like comp usa is because they give out freebies like car adaptors, whereas apple stores don’t give out these offers, thus they tend to be selling faster in most stores.

Posted by jojo on November 28, 2005 at 11:33 PM (PDT)

15

Congrats to Apple, they have successfully beaten all odds and have come up with an international winner: the iPod. So what if they control the marketplace to a degree, they wouldn’t be the first. And why is it when a company, like Apple, becomes successful people start to gnaw at them for enjoying their accomplishment? Apple virtually has raised the bar in every area they’ve ventured. I can think of no better place that I prefer to purchase my Apple products than an Apple store. Apple stores are very continental in design, well-built and furnished. Walking into my nearest retail stores (let’s take the one with the blue and yellow color scheme) is like venturing into a high-school reunion with Dick and Jane (said employees) on the telephone to their zombie friends and customer service…what customer service. Apple is not perfect, but it is better than most. I raise a pint to Apple—cheers!

Posted by FahrenheiPod 451 on November 29, 2005 at 12:37 AM (PDT)

16

When has Apple ever had higher prices that other stores? They still aren’t cheap, but I’ve never seen them try to sell an iTrip for $50 like Best Buy does.

Posted by EricS2008 on November 29, 2005 at 4:47 AM (PDT)

17

Uh, MIchael when was the last time you touched a mac. The new standard mouse does support right click retardedness. By the way what do you do with your left hand while right clicking, spanky. Oh and your mom sucks and my dad can beat up yours…So there…

Posted by dimefan on November 29, 2005 at 6:45 AM (PDT)

18

Of course they need to protect their own stores.  How would it look if the Apple retail stores ran out of THEIR own product.

Posted by Kank on November 29, 2005 at 7:19 AM (PDT)

19

It is an Apple product. What is the big deal if they have more. You do not here Toyota complaining when I go to the Cheverolet dealership to buy…oh lets say a… Chevrolet. Really if Apple wanted they could be the sole distributer of there own product that is branded and patented by Apple.  geeeeezz

Posted by Mattbrewer on November 29, 2005 at 9:13 AM (PDT)

20

how about there are tons more 3rd party stores than apple stores

Posted by jason on November 29, 2005 at 2:18 PM (PDT)

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