American customers will need to wait up to a month before they get their hands on the new Apple iPad 2 even if they order online, all but confirming fears the Australian launch in two weeks’ time will be plagued by the same stock shortage issues.
Customers seem to be mostly satisfied with their new gadgets. The hundreds who lined up outside Apple Stores and managed to buy the device have said the new iPad is superior to the original version.
Reports indicate Apple stores sold out within hours of first opening, while some Best Buy locations reportedly sold out within minutes as they only held lower amounts of stock.
Telsyte research director Foad Fadaghi says that situation is likely to occur again when the iPad 2 launches in Australia on March 25.
“It’s quite likely there will be people who line up on the first day, and demand will outstrip supply. That’s quite normal,” he says.
The original iPad sold hundreds of thousands of units within its first weekend. Within its first month, over one million had been sold – while there are no sales figures available yet for the new version, it’s safe to assume the iPad 2 will come close to that amount.
Some have criticised Apple for artificially restricting its own supply chain in order to build up demand. But Fadaghi suggests that isn’t the case.
“It’s difficult to say, but this is a product that needs to be manufactured and administered to a lot of different locations. It’s understandable if there are shortages especially right after the initial launch.”
“You simply can’t launch everything at once in every location and have an abundance of stock. Apple has also been very quick to bring this out to market, so delays are understandable.”
The only way for American customers to get their hands on a device was to line up outside an Apple Store, or through a variety of resellers’ retail outlets including Best Buy, Wal-Mart, AT&T and Verizon.
A line hundreds of people long stood for hours outside the 5th Avenue store in New York – and one college student even paid $US900 in order to be the first in line. Many stood there for over 40 hours, even in pouring rain.
In San Francisco, lines were longer than for the iPhone 4 launch, and there are numerous reports Apple Stores in Kentucky, Maryland and Texas are completely sold out. Los Angeles stores are also said to be sold out as well.
Piper Jaffray & Co analyst Gene Munster, one of the analysts who originally predicted the launch of the iPad, told the Wall Street Journal that “we didn’t expect anything close to this”, with regard to the demand.
He added that a quick survey of 200 people who bought the iPad 2 found that most did not own the previous version.
But those in line may have the biggest chance of getting their hands on the device this weekend, with Apple warning on its website that iPads will take up to three or four weeks to ship – well after the iPad 2 will have launched in Australia.
But despite the delays, reception to the device has been positive. Tech trades have praised the gadget’s faster speed, although point out it is not necessarily a revolution in design but more of a transitionary step to a future iPad model.
There have been some technical malfunctions – some users have reported their screens being faded in some areas – but most of the units appear to be operating normally.
