More Apple pwnage

[notyoueither]

You do if you want your product in their stores, Tingkai.

The manufacturer has the onus to manage the inventory. Bohunk retailer may order a million, but the manufacturer has to decide how many to deliver.

In some cases manufacturers actually buy shelf space. They pay rent on so many feet of shelf and get to decide what to put there and when to pull it out. As an example, when Vista released all the XP boxes got pulled from many chains. That's because MS not only still owned the unsold boxes, but they have the right to decide what gets put on 'their' shelves.

[MarkG]

apple rules, i just found that there is a facebook exporter for iphoto. no such thing in windows. the world will finally take a look at my potos easily

[-Jrabbit]

The are only two reasons I'm aware of where a manufacturer might accept returns on unsold merchandise:
1. They want outdated merch off the street so the new model will succeed quickly.
2. The merch wasn't actually sold, but sent out conditionally (typically, a consignment arrangement). Several big-box stores use this method to control costs, as manufacturers are competing for shelf space in these "big pipeline" operations. In this scenario, they are forced to accept product returns if the merchandise doesn't meet turnover goals.

The first situation doesn't apply, The second situation is one that's dictated by the retailer, in advance, as a condition of acceptance. Highly doubtful that's happening at ATT stores.

To quote Capt. Jack Sparrow, the hallmark of manufacturing is much like that of piracy: "Take what you can. Give nothing back!" You move product out and collect money. Case closed. Call us when you want more.

If ATT screwed up and over-ordered, I can assure you that, assuming they've been invoiced, Apple regards those units as "sold." It's just standard business practice.

The assertion that iPhone Units Sold Minus Activations Equals Unsold Stock is therefore highly likely to be correct -- with the exception of the handful of units now being hacked to work on other networks (T-Mobile in the US, and I hear iPhones are selling underground at 2X MSRP in China.)

[Tingkai]

Originally posted by notyoueither
You do if you want your product in their stores, Tingkai.

The manufacturer has the onus to manage the inventory. Bohunk retailer may order a million, but the manufacturer has to decide how many to deliver.

In some cases manufacturers actually buy shelf space. They pay rent on so many feet of shelf and get to decide what to put there and when to pull it out. As an example, when Vista released all the XP boxes got pulled from many chains. That's because MS not only still owned the unsold boxes, but they have the right to decide what gets put on 'their' shelves.

Sounds screwy. Stores will want to carry a product like XP. Microsoft has monopolistic power for this item. Seems like Microsoft can set the terms and make the sale rather than consigning goods. At the very least, I can't see MS begging to get stores to buy the product.

On the product placing, I can see where they would do a deal (lower wholesale price, payment period, etc) to get space front and center, but saying they'll take back unsold stock...

[notyoueither]

It is very common in software.

[notyoueither]

And MS doesn't beg to get the stores to buy the product. They do however want full shelves, and those shelves to be prominent. What do your think major chains do with v1.5 when 2.0 is released? Eat it?

[-Jrabbit]

Tingkai, the situation NYE describes is actually fairly common. Getting eye-level position in a grocery, for instance, can make a huge difference in sales totals. Some mfrs. regard it as extortion, but they'll do it, telling themselves it's really just another form of discounting.

This practice certainly doesn't cross all industries and is IMHO highly unlikely to be the actual scenario for iPhones in ATT stores. I would guess that ATT was on their knees begging for the retail exclusive from Apple, for good or for ill.

[Tingkai]

On the upgrades, the maker knows when the upgrade will happen and will cut back on supplies to the store, and the maker will buy back the old versions to clear them off the shelves.

With floor space, no doubt deals get done, but saying they'll take back all unsold proucts, why go that far if you're MS.

[Kuciwalker]

Because MS may have a monopoly on operating systems, but that doesn't mean they move many units in retail?

[Agathon]

Originally posted by MarkG
apple rules, i just found that there is a facebook exporter for iphoto. no such thing in windows. the world will finally take a look at my potos easily

Potos?

Quick close the thread, because Markos is going to inflict on us pictures of him drinking!!!

[MarkG]

Originally posted by Agathon
Quick close the thread, because Markos is going to inflict on us pictures of him drinking!!!

hmmmm now introducing: iPoto! keep your drink cool and your image cooler

[Nikolai]

iUnlock released: the first free, open source iPhone SIM unlock software

[Zopperoni]

... and AT&T stock price continues to tumble

[Agathon]

The last year or so I tend to read this guy.

His take.

http://roughlydrafted.com/RD/TechQ307/Entries/2007/9/12_Why_Dan_Frommer_and_Scott_Moritz_Are_Wrong_on_iPhone_Sales.html

In many ways he's one of the better mac journos on the web, except for Fake Steve Jobs while he was still fake. The site is pretty horrible though. The "Zoon" awards are usually pretty funny, just like John Gruber's "jackass of the week".

[Ming]

It's over 500 posts... time for another thread