So, Apple Watch Launch strategy...

MacInWin said:

With iPhones, Apple had history so they could predict better.

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I think this is key. With the original release of the iPhone, Apple had stock issues as well (see here) which, like the watch, was a new product. Fast forward to now and although Apple may still have issues with stocking the iPhone around launch time, they've gotten much better at predicting it. The watch is like the original iPhone - it's still new and there was no history to lean on in deciding how to stock and manufacture the device.

dbm said:

That wasn't actually the point of the thread...

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The point of the thread is/was…you didn't get an iWatch. If you had gotten an iWatch…you would not have started the thread.

Whether the UK was allocated 100 iWatch's or 25,000 it really doesn't matter...you didn't get one. And now you have to wait to get one like a lot of other people. I understand that you are disappointed. But arguing about decimal points or Apple conspiracies really isn't very productive…and is not going to change things.

If you understood how large companies work…you would understand the many dynamics that go into launching a new product. I've worked in research & development in the consumer products industry for the last 25 years. Rarely do you get to launch a brand new product under perfect conditions.

Many times compromises need to be made. And sometimes one compromise that needs to be made is launching a new product before enough inventory has been manufactured to supply the forecasted demand. Sometimes (because of market conditions & competition pressures) launching a new product sooner with less inventory…is better than waiting 3 or 6 more months and having more inventory.

If you wait too long…the competition will be releasing their version 2 or version 3…which could make Apple's version 1 look unattractive. Now you (Apple) has 20 million (or more) units sitting in warehouses that no one wants. That's a LOT of lost revenue!

There are lots of risks when launching a new product. The idea is to choose the least risky timeline.

- Nick

MacInWin said:

You cannot make the assumption that there is no reserve capacity to manufacture the watch. Reserve stock, yes, but not capacity to manufacture.

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Sorry - I meant stock, not production capacity.

I cannot think of a way that this out of stock situation is a marketing ploy. I'm sure if Apple had them, they'd love to sell them.

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The most likely scenario to my mind is a limited rate of production on the saphire screens. We already know that there were major issues with Apples first partner on this (Link)

chas_m said:

I do think Apple was surprised by stronger-than-expected demand. I think they knew they would do okay, but this is a brand new product ... as in COMPLETELY new product ... and thus no real way to foretell demand..... My guess is that, despite a recent confirmation that its online orders only for now ...

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I agree the very newness of the product whips up all kinds of interest.

I do wonder if the "on-line only" ordering was done because they had no idea the level of demand so they wanted total control - for now - of orders and numbers needed.

Have any other new launch of an Apple product been on-line order only? I only ask because I have no idea - still having my newbie moments.

Lisa

Lisa online orders only is a great move by Apple, imho as a shareholder.

Saves paying commissions to Resellers world wide when demand is so great. Apart from placing your product in the market place at a price folk believe they can afford, creating a huge demand by the buyers is a healthy thing.

Everything hardware related Apple has released in recent times has created this demand. iPhones and even the late 2012 iMac had several months waiting lists when first released.

More information is coming available as time goes on. It looks like there was a problem with one of the suppliers of Taptic engines: Mac Rumours. The original article is behind a paywall.

Also, based on the Apple Watch forum over there not one 'space black' or regular link bracelet appears to have been delivered to customers at this point.

http://www.macnn.com/articles/15/04...reakdown.tendency.revealed.in.testing.128409/

I am fairly sure I have seen pics of a Black Apple Watch in the wild. Might have been a review unit, however.

I have seen review items under glass, too. But Manchester Trafford Centre (top 5 stores in the UK) didn't have any for try-on and very few people have been able to try one on even in the U.S. No customer orders have shipped for any link bracelet (big, small, silver, black) as of last night at least based on posters at MacRumours. And even a gold Edition watch has turned up there in the 'Show us your Watch' thread.

dbm said:

My point is this: it was easy to buy an iPhone 5, 5S and 6 on launch day. It was easy to buy an iPad Air on launch day.

If you want to tell me that Apple has sold more Apple Watches than iPhone 6 handsets on launch day then please produce the figures for that, as you put so much store in them?

Or accept that the supply of Apple Watches is radically less than the demand. Which is either a marketing move, or an indication of significant challenges in producing Apple Watches.

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Im 100% with u on this. The whole experience is a turn off and a blunder.

I dont mind the lack of ability to buy the watch in person at a store. I actually like the strategy of selling online only.

But this was supposed to make supplying demand easier as each store wouldnt be sitting on inventory that they mis-judged for particular markets.

I think it's safe to say that Apple knew that this would be a problem and that is why they didnt have in-store inventory. They werent trying to prevent a bad situation, they were trying to make the best out of a bad situation. They knew they wouldnt meet demand yet they still had some pressure to get the product out.

2+ month wait times is unacceptable. Save the rhetoric or excuses.

From what we have since learned around problems with Taptic units and (apparently) over exuberant celebrations for the Chinese New Year (did no one have a calendar?) there have been problems with supply.

I understand (and think we agree) that the comparatively huge range of variation in Watches vs other apple products means that this launch could only be done by internet pre-order. If they just stocked all the stores with the same product mix things would definitely end up imbalanced. The confusing bit is why there wasn't a bigger stock of some units at launch? Not one Space Black was sold anywhere in the world on launch day. This implies that they are making the watch to order. This is understandable in some ways (like you have to special order some configurations on Macs and so on) but you would think they would have confidence in selling a thousand in the first month or so and so have a stock built up?

Hopefully the facts will come out through analyst and stockholder briefings in time.

dbm said:

From what we have since learned around problems with Taptic units and (apparently) over exuberant celebrations for the Chinese New Year (did no one have a calendar?) there have been problems with supply.

I understand (and think we agree) that the comparatively huge range of variation in Watches vs other apple products means that this launch could only be done by internet pre-order. If they just stocked all the stores with the same product mix things would definitely end up imbalanced. The confusing bit is why there wasn't a bigger stock of some units at launch? Not one Space Black was sold anywhere in the world on launch day. This implies that they are making the watch to order. This is understandable in some ways (like you have to special order some configurations on Macs and so on) but you would think they would have confidence in selling a thousand in the first month or so and so have a stock built up?

Hopefully the facts will come out through analyst and stockholder briefings in time.

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Well put.

U know, had they told me my watch would be "made to order" from the start, I might have taken less of an issue with this whole ordeal. But then again, like u said, they couldnt have just made 1000 of them so they have SOME stock?

I dont expect any help from the stockholder briefing. I think the rush to market had everything to do with appeasing stockholders. They'll be trumpeting their future revenue since their are so many watch customers in que waiting for the **** things to ship. And everyone will clap and declare the launch a success.

The latest news is that Tim Cook has told staff in China that in-store sales will start in June, so I remain hopeful that they will have processed at least the launch-day orders by that point.

A friend who ordered a Space Grey Sport and originally had June as her estimate has just received a shipping notification.