With the launch of every new iPhone, Apple has traditionally reported its first weekend sales. However, this will not be the case this year. Apple has announced that they will not report first weekend sales of the handset. The reason behind this decision is that they expect to sell out of all of the handsets they have available for launch, making the initial sales figures more an indicator of supply rather than demand.
“As we have expanded our distribution through carriers and resellers to hundreds of thousands of locations around the world, we are now at a point where we know before taking the first customer pre-order that we will sell out of iPhone 7,” Apple spokeswoman Kristin Huguet said. “These initial sales will be governed by supply, not demand, and we have decided that it is no longer a representative metric for our investors and customers.”
Understanding Apple’s Distribution Strategy
Apple’s decision to withhold first weekend sales figures is rooted in its extensive distribution network. Over the years, Apple has significantly expanded its reach through partnerships with carriers and resellers. This expansion means that the iPhone is now available in hundreds of thousands of locations worldwide. This widespread availability ensures that the initial stock is quickly depleted, regardless of the actual demand.
For instance, in previous years, Apple reported record-breaking sales numbers for the first weekend, which often led to a surge in stock prices and investor confidence. However, these numbers were not always indicative of long-term demand. By not reporting these figures, Apple aims to provide a more accurate representation of the market’s response to the new iPhone over a more extended period.
The Impact on Investors and Customers
For investors, the first weekend sales figures have traditionally been a key metric to gauge the success of a new iPhone launch. However, as Kristin Huguet pointed out, these figures are increasingly becoming a measure of supply constraints rather than actual consumer demand. By not releasing these numbers, Apple is encouraging investors to look at more comprehensive metrics, such as quarterly sales figures and long-term market trends, to assess the company’s performance.
For customers, this move might seem less impactful, but it does highlight Apple’s confidence in its product. Knowing that the initial stock will sell out regardless of the reported figures suggests a strong belief in the iPhone 7’s appeal. It also underscores the importance of pre-ordering for those eager to get their hands on the latest model.
Apple is expected to sell out of its initial supply of the new iPhone by the end of next weekend. The device goes on sale next Friday, the 16th of September. This anticipation of a sell-out aligns with the company’s strategy of creating a sense of urgency and exclusivity around its products.
Moreover, this approach allows Apple to manage customer expectations better. By not focusing on the first weekend sales, the company can emphasize the overall user experience and the innovative features of the new iPhone, rather than just the initial rush to purchase.
In conclusion, Apple’s decision to withhold first weekend sales figures marks a significant shift in its launch strategy. By focusing on long-term performance and broader market trends, Apple aims to provide a more accurate and meaningful assessment of its new product’s success. This move reflects the company’s confidence in its extensive distribution network and the enduring appeal of its products. As the iPhone 7 hits the market, both investors and customers will be watching closely to see how this new strategy unfolds.
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