It seems like just about every month Apple is coming out with some new gadget or upgrade to one of there previous products. Today Apple introduced the iPad Mini, which will be the first major extension int he companies line or products in over two years. The cost for this new device will start at $329 and will be available November 2nd or on presale this Friday.
The iPad mini apparently was a product that Steve Jobs had dismissed early on because he thought these smaller tablets were highly prone to failure in the market. But as other companies such as Google and Samsung have had their mini tablets fail Apple defends themselves by saying those products were just not what the consumer wanted. This time around Apple has taken the time to ensure its features were good enough for their customers.
Analysts at today’s meeting say that the release of the iPad mini will help maintain Apples momentum in the industry. Many analysts also predict that this products will become a key player in education and emerging markets such as China. With this being said Apple is already forecasting for a high demand for this product globally.
As we saw with the release of the iPhone 5, Apple needs to be able to manage their quality of their products and forecast accurately for the demand in this new product. Inventory management is going to be key as these new products are going to be demanded in stores and online to customers all over the world. It will be interesting to see the quality of this new device as well as how Apple keeps up with consumer demand.
We all know the IPhone 5 is the hottest item to have right now, but how has this IPhone differed from those of the past? This time around Apple decided to design the phone with a thinner, lighter touch screen. This however, lead demand to outstrip supply on the IPhone big debut weekend. This is the first time Apple is using in-cell screen technology whose components are made by LG and Japan Display Inc. This new technology change was the first time since 2010 and helped sell over 5 million new phones in just three days. The problems arose due to the fact that they needed to produce a lot of product and get it to all their distributors and this more than likely did have some impact on the quality of the phone. The IPhone accounts for 2/3 of Apples profit and a successful debut was critical this time around.
It has been a challenge for LG to keep up with the demand for parts since Japan Display has not yet started shipping out their products due to quality changes they are still working on. As one analyst put it “Apple is struggling to keep up with demand”. This is a huge problem for Apple who relies on its suppliers to be able to keep up with the demand from their customers.
Many analysts are saying these constraints will be short lived due to the fact that Apple spends so much money on these components they will be the first in line to have orders placed and shipped. Apple is these companies best customer and they will do whatever they can to make sure they keep up with Apples demand for parts. The problem now arises if Foxconn Technology Group in China will have the labor needed to be able to keep up with demand when it comes to actually assembling the phones and shipping them out to stores around the world.