‘iPod shortage’ could be self-fulfilling prophecy
When a financial analyst noted iPod touches selling out at Amazon earlier this week, it seemed a slender basis to conclude everything was rosy for Apple. But now Shaw Wu is finding shortages of several other iPods in several outlets.
Wu notes shortages of some iPod models in Best Buy, Target and Wal-Mart as well as Amazon. He tells Reuters: “Frankly, we find these sell-outs on iPods surprising given how difficult the macroeconomic environment is, putting a crimp on consumer spending.†Wu speculates that ‘relatively low’ prices help, as does the fact most consumers know the product well.
The comments have prompted many media stories suggesting the iPod could become this year’s must-have present with consumers desperate to find somewhere to buy one. But more cynical reporters question whether such an outcome might simply be a result of such media coverage itself.
PCWorld goes as far as to ask “Could this one analyst’s discovery — now spread all over the Internet — be an intentional plant in order to feed the consumer fire?†That sounds a little far-fetched. While there’s no doubt some media figures have a pro-Apple reputation, there’s no reason to suspect Wu’s information is either duff or misleading.
The real question is how you interpret his findings. As I noted earlier this week, stores running out of stock doesn’t necessarily tell you how strong demand is: it simply tells you that stores and suppliers underestimated demand.
For those who do like conspiracy theories, here’s one that might stand up better. Despite the shortages, every iPod model is still available from Apple’s online store. It certainly doesn’t do any harm to the company if a supply problem in retail stores drives customers to Apple’s Web site where it almost certainly makes more profit on each sale with no retailer cut.
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