Does Apple Inc. (AAPL) Deliberately Delay Deliveries of Its Products?


Though Apple Inc. (NASDAQ:AAPL) officially presented its new devices on September 9, according to Apple Inc. (NASDAQ:AAPL)’s website, iPhone 6 Plus buyers may have to wait at least three to four weeks before they can get their devices delivered. However the 4.7-inch iPhone 6 delivery time hasn’t changed and customers can get it from September 19 onwards. The much-hyped Apple Watch will be available for purchase in early-2015 according to the company. While some on the Street consider these delays as a bad sign for Apple Inc. (NASDAQ:AAPL), others believe that the delays are a result of the strong demand for its products. Bloomberg Intelligence’s Anand Srinivasan and Cory Johnson discussed about the new products launched by Apple and how the delay in deliveries will affect the company.

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“This has happened before and this is actually a sign of a pretty healthy demand for the product, they have broadly engaged the platform. They are teased quite a bit about this and they have a regular interval with which they introduce products. So, product platform is healthy is what this indicates,” Srinivasan said.

Srinivasan highlighted that Apple Inc. (NASDAQ:AAPL) is playing according to its rules, according to which it launches its products a little before the end of third quarter so that most of the sales take place in the holiday season, which lies in the fourth quarter.

Johnson believes that by delaying the Watch, Apple Inc. (NASDAQ:AAPL) gets to enjoy two benefits. One being that it ‘freezes’ out similar products from competition i.e. people will wait for the Apple Watch instead of buying similar wearable devices from competition. The second advantage is that app developers have the required time to come out with exciting and unique apps for the device.

As of June 30, 2014, Carl Icahn’s Icahn Capital LP owns over 52 million shares of Apple Inc. (NASDAQ:AAPL).

Disclosure: None

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