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For six years, the Internet Nexus served as my technology blog, but I've since started blogging at the SuperSite Blog instead. If you're looking for the blog, please head there. --Paul

Tuesday, July 06, 2004

What is the real reason behind Apple’s shortage of iPod minis?

MacNETv2: "Is Apple being badly managed? Can you blame Apple/Jobs for the fact that you cannot buy an iPod mini if your life depended on it? Or do you simply give Apple a pass, and instead blame Hitachi or not making enough 1" hard drives to satisfy demand? Is it time to take a long hard look at Steve Jobs' performance as CEO, or give him another Gulf Stream Jet? ... The economic outlook pointed to a strong recovery, and most companies were ready for it. An example of that is HP; several months ago HP announced over 150 new products in a single day. Since that time every product they announced have been in plentiful supply ... There are a couple of other products on the market that use the 4GB Hitachi drive, the Creative Nomad MuVo 4GB is one of them. If Hitachi committed to more hard drives than it can make shouldn't products like the Nomad be as hard to get? Creative offers the Nomad MuVo here and the product is in stock as of today. When we asked Creative about its supply they offered up the fact that sales are brisk and supply has never been a problem. The 4GB Nomad MuVo sells for $50 less than the iPod mini. Go figure ... When I visit Amazon.com I find that the Hitachi 4GB drive is in stock and available for overnight delivery ... At several online stores I found the Nomad MuVo available for delivery tomorrow, at prices ranging from $189 to $199. Clearly the 4GB Hitachi drive is not in short supply, so why is the iPod mini a hard to find product? ... Apple has claimed that the shortages of iPod minis are based on the unavailability of the 4GB Hitachi drive. But these drives are available, both as stand-alone units and inside other products."

This is an interesting analysis, but I think he's missing a key point: Apple has yet to reveal any sales figures for the iPod Mini or correct its original "100,000 pre-orders" announcement. My suspicion? Apple's Mini isn't selling very well at all, past the 100,000 preorders. And what sales it would have would cannibalize the pricier (and more profitable) iPod. Thus, the iPod Mini is unavailable for purchase, sorry, making it the ultimate vaporware product. But give credit where credit is due: Apple turned this little customer screw-over into the ultimate PR event. Now the company can claim that it can't meet demand. Cute.

[ Posted at 1:40 PM | Permalink ]