Rumor: There will be "grotesquely unavailable inventory" for iPhone 5s launch

Apple decided not to offer people a chance to pre-order units of the iPhone 5s before its latest smartphone goes on sale Friday, September 20th. Now we may know why. Online reports are coming in that the first shipments of the phone won't come close to matching the demand that is expected for its launch date.

Boy Genius Report claims, via unnamed sources, that iPhone 5s shipments have been "severely constrained” to its wireless carriers. AllThingsD.com quotes one carrier representative as saying, "We will have grotesquely unavailable inventory." Yes another unnamed carrier rep also said iPhone 5s shipments will be lower than expected but added that there may be less demand for the phone than first thought.

If you had your heart set on getting the cheaper, and plastic, iPhone 5c, those same online reports indicate there should be plenty of those devices to go around when they hit store shelves Friday. Apple has already started pre-orders for the iPhone 5c. However, its stock price went down earlier this week after Apple did not issue its normal press release that stated just how many pre-orders of the iPhone 5c it had received in its first 24 hours.

Source: BGR and AllThingsD.com | Image via Apple

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People standing in line to be sure they get one will ensure Apple and the iPhone get free press on every news outlet around the world.

Brilliant marketing...

The best thing you guys do is to NOT get it on launch. Then those "analysts" will scratch their heads...

Headline: No one bught iPhone 5S - pigs seen flying

x-byte said,
pigs seen flying

actually, those are microsoft ant-boys jumping off tall buildings out of boredom. but you're close enough. lol.

LOL, "shortage"...yeah right. PLANNED SHORTAGE, to get the people who want an iphone all worked up, gets them to stand in line for days, free publicity for Apple because the drones in the news media will cover it. Win Win for crAPPLE.

unlike microsoft which runs honest marketing campaigns, never break any rules and never-ever suffer 'grotesquely unavailable inventory' issue.

Albert said,
unlike microsoft which runs honest marketing campaigns, never break any rules and never-ever suffer 'grotesquely unavailable inventory' issue.
Sarcasm right Albert?

stevan said,
But people on Neowin told me that Apple is doomed and that this version if iPhones will not sell at all...
Duh...its obvious they will sell phones. They will sell million. But selling million is not equal to selling usually 30M+

Facts show Apple likely didn't even sell 30M iPhone 5's. Why? Because for 3 quarters the 4S was still outselling it and so was the Galaxy S III.

As of March 2013, Samsung sold over 50M GS3's. As of this same point, Apple had reported they were lowering production of the iPhone 5. You all thought this was normal when a new model is about to be announced. That was BS. The fact they dropped production when they never have before shows sales were lack luster. Its that simple.

TechieXP said,
Duh...its obvious they will sell phones. They will sell million. But selling million is not equal to selling usually 30M+

Facts show Apple likely didn't even sell 30M iPhone 5's. Why? Because for 3 quarters the 4S was still outselling it and so was the Galaxy S III.

As of March 2013, Samsung sold over 50M GS3's. As of this same point, Apple had reported they were lowering production of the iPhone 5. You all thought this was normal when a new model is about to be announced. That was BS. The fact they dropped production when they never have before shows sales were lack luster. Its that simple.

WHAT FACTS????

http://www.statisticbrain.com/iphone-5-sales-statistics/

Iphone 5 SOLD 57 MILLION!!!

What are you talking about?????

Yea, I think something else is going on here. Each new version of the iPhone has done better than the last. you would think they could estimate sales better and have the required stock available.

But hey, people are already in lines waiting for it....

techbeck said,
Yea, I think something else is going on here. Each new version of the iPhone has done better than the last. you would think they could estimate sales better and have the required stock available.

But hey, people are already in lines waiting for it....

Accept this time it took longer for the newer model to outsell the older model. It took 3 quarters before the iPhone 5 outsold the 4S, which in the past the iPhone 4 and 4S outsold their predecessor early on.

TechieXP said,
Accept this time it took longer for the newer model to outsell the older model. It took 3 quarters before the iPhone 5 outsold the 4S, which in the past the iPhone 4 and 4S outsold their predecessor early on.

No it didn't, it took one quarter. Again you're wrong.

Nice, make people pay about the same for a 5C which I am sure has a higher margin. Applites will flock to the same phone like flies on crap.

Spicoli said,
They've been playing this same viral marketing game for years. Aren't people tired of it?

The risk this time is that demand might not actually match previous releases, so if there does end up still being stock available, it won't be good for Apple's share price...

Upon further reflection, creating a shortage buzz is a great way to drive traffic. I'm seeing multiple websites reporting the same thing. Im also seeing people comment on waking up at 1am instead of 3am to wait in line. Hmm

JHBrown said,
Upon further reflection, creating a shortage buzz is a great way to drive traffic. I'm seeing multiple websites reporting the same thing. Im also seeing people comment on waking up at 1am instead of 3am to wait in line. Hmm
That is false. The traffic was already going to be their. What will happen now is more will come trying to feast on a meal made for 2.

This is assuming the demand for the iPhone 5S is high. I watched the video yesterday from the release and no one in the audience really looked all that impressed. I watched YouTube videos of people setting up and trying to use the sensor and they don't seem impressed and their were times it didn't work which is exactly the fact I gave to several about the thing based on older concepts.

The only thing that is cool is the gold/white one does look really nice along side the white with silver. But looks aren't going to cut it because after 4 years of having models that look 99.9% identical, people are moving on.

While all the fans were trying to say the GS4 wasn't a significant upgrade above the GS3, they were simply blind to facts. he GS4 has a much faster CPU/GPU, larger screen, much higher resolution, new case design with the same Gaalxy signature and a host of software gimmicky features the GS3 didn't have. What does the iPhone 5S have over the 5? A faster CPU/GPU, a biometric sensor and a reskinned OS that does all the same things and they finally added camera features Android phones had since 2009.

I bet in 5 months Apple wont sell 35M iPhone 5S'.

TechieXP said,
While all the fans were trying to say the GS4 wasn't a significant upgrade above the GS3, they were simply blind to facts. he GS4 has a much faster CPU/GPU, larger screen, much higher resolution, new case design with the same Gaalxy signature and a host of software gimmicky features the GS3 didn't have. What does the iPhone 5S have over the 5? A faster CPU/GPU, a biometric sensor and a reskinned OS that does all the same things and they finally added camera features Android phones had since 2009.

This is a great example of how us techies are completely out of touch with people. We talk about horsepower as if any of it will make a difference for the customer. What good is a super bleeding edge processor if it doesn't play the games or apps you want?

Fans care about what they like; they don't sit on message boards telling other people their products are inferior. That only happens on the internet because we've got to feed our egos somehow.

Also, being first means diddly squat. If we went with the company who was first to everything every time, there wouldn't be any competition and we'd be much worse off.

Apple is well aware the the last upswing in demand seen after the iPhone5 Launch last year was due to increased demand for the 4S and not the 5. Since then number have only dwindled and all things seem to point to an absence of a surge in sales numbers for the 5s/5c.

I can well see sales stalling (worldwide) and this causing Apple stock to plummet even lower. Get ready to see <$400 numbers in about two months.

paulheu said,
Apple is well aware the the last upswing in demand seen after the iPhone5 Launch last year was due to increased demand for the 4S and not the 5. Since then number have only dwindled and all things seem to point to an absence of a surge in sales numbers for the 5s/5c.

I can well see sales stalling (worldwide) and this causing Apple stock to plummet even lower. Get ready to see <$400 numbers in about two months.

You always start your day by being this wrong?

stevan said,

You always start your day by being this wrong?

If Apple had overwhelming launch numbers, they would have announced them. Why is he wrong? With the iPhone 4 Apple was bragging about the 600,000+ pre-order, the following year with the 4S they bragged about the 1M+ pre-orders, with the 5 they had 2M pre-orders, yet 2 quarters later they lower production do to poor sales. The iPhone 4S continued to outsell the 5 for nearly 3 full quarters. Sales of the Galaxy S III soared and so did more expensive phones like the Droid Maxx even after the iPhone 5 was announced. Verizon reported and you can easily Google that fact.

The facts are there. I don't know why you fanbois always want to deny them. Just like Steve Jobs where Macs were just sitting on the shelves in warehouses and he thought they were selling.

Stop ignoring facts. If Apple had a huge turnup of 24hr sales as before, what makes you think they wouldn't be bragging now? I KNOW...the sales have sucked, because the vast majority of people don't want some ugly plastic iPhone.

When you have a product that starts off made of cheap materials like you guys call it, and you use better stuff, you don't go back to using crap.

Its like a girl who finally dates a guy who has his own car, she isn't going to go back to dating a guy who was footing it on the bus. Same, as a girl who dates a guy with his own apartment, she isn't going to go back to dating a guy who lives with his mom.

Read the writing on the wall dude. After 4 years of basically releasing the same model with no real distinct changes, people are moving on. The Galaxy Note III is going to sell millions on pre-order. But Samsung usually doesn't announce pre-order sales so they shouldn't start now. What we do know is that in 5 months the GS4 sold over 35M making it the fastest selling phone to this date.

Look at the numbers, even tho Apple report more profit, sales of all their products drop with the exception of iPhone. But that is iPhone based on all selling devices as APple never gives sales numbers of each model. You know why? Because if they did you'd be surprise that likely the older model outsells the new one for several months or because they aren't as great as they make them seem to be.

TechieXP said,
If Apple had overwhelming launch numbers, they would have announced them. Why is he wrong? With the iPhone 4 Apple was bragging about the 600,000+ pre-order, the following year with the 4S they bragged about the 1M+ pre-orders, with the 5 they had 2M pre-orders, yet 2 quarters later they lower production do to poor sales. The iPhone 4S continued to outsell the 5 for nearly 3 full quarters. Sales of the Galaxy S III soared and so did more expensive phones like the Droid Maxx even after the iPhone 5 was announced. Verizon reported and you can easily Google that fact.

The facts are there. I don't know why you fanbois always want to deny them. Just like Steve Jobs where Macs were just sitting on the shelves in warehouses and he thought they were selling.

Stop ignoring facts. If Apple had a huge turnup of 24hr sales as before, what makes you think they wouldn't be bragging now? I KNOW...the sales have sucked, because the vast majority of people don't want some ugly plastic iPhone.

When you have a product that starts off made of cheap materials like you guys call it, and you use better stuff, you don't go back to using crap.

Its like a girl who finally dates a guy who has his own car, she isn't going to go back to dating a guy who was footing it on the bus. Same, as a girl who dates a guy with his own apartment, she isn't going to go back to dating a guy who lives with his mom.

Read the writing on the wall dude. After 4 years of basically releasing the same model with no real distinct changes, people are moving on. The Galaxy Note III is going to sell millions on pre-order. But Samsung usually doesn't announce pre-order sales so they shouldn't start now. What we do know is that in 5 months the GS4 sold over 35M making it the fastest selling phone to this date.

Look at the numbers, even tho Apple report more profit, sales of all their products drop with the exception of iPhone. But that is iPhone based on all selling devices as APple never gives sales numbers of each model. You know why? Because if they did you'd be surprise that likely the older model outsells the new one for several months or because they aren't as great as they make them seem to be.

http://appleinsider.com/articl...ne-sales-iphone-4s-takes-30

Do your research before you post kid. With every post you make yourself look more and more uneducated.

http://9to5mac.com/2013/09/18/...r-forecasts-morgan-stanley/

http://bgr.com/2013/09/17/iphone-5c-preorders-total-est/

Now, I realize it's only analysts, but these guys have been right many more times than you.

And what's also hilarious is that you speak about facts yet nothing concrete has been released yet. Please backup your statements from now on like "grownups" do or stop posting.

From all of us on neowin....

Oh wow, this was so unexpected. Not like they don't do this every year to increase demand. Why do people still fall for this?

so if someone wanted to try and get one in order to make a profit on ebay....the 5s would be the one to get

NOTE TO MODS: It is not my intention to do this, I am just making a point regarding supply and demand. There are those people who will pay a hefty premium to be the first to get a new model. iPhone 4 was one such model, as was the Nexus 4 on launch. This should not be interpreted as an attack on apple or trolling.

"If you had your heart set on getting the cheaper, and plastic, iPhone 5c, those same online reports indicate there should be plenty of those devices to go around when they hit store shelves Friday. "

Won't somebody please think of the shelves?!

According to Neowin, things hit shelves, and companies "quietly" makes changes, as if there is supposed to be a press release for everything a company does. I guess its Neowin's aim to fill in that void.

Typical artificial supply issues, done deliberately to drum up demand and increase media attention.

We're not stupid, Apple. Well, not all of us, anyway.

I'm actually inclined to believe this rumour.

A friend of mine works in the IC industry and mentioned that limited supply would severely hamper availability of the iPhone 5S for some time.

I think I know who you're talking about, but I won't mention it as my flame suit is at the cleaners.

It was absolutely ****ing terrible, the fanboys will say it was to hype it up, but it was just company x being so useless that realising how popular the phone would be.

I waited about 5 weeks after launch in Australia.

at this point apple doesn't need to artifically create demand, the demand is there. It simply comes down to production, there is a limit to what can be made in the space of time.

Will we be saying the same thing when the Xbox1 and PS4 go out of stock, sometimes there is a big hit and theres nothing any company can do about it.

Also remember that the iPhone is launching simultaneously in multiple counties including China for the first time and the big telco in Japan, thats seriously going to put a dent in availability.

FloatingFatMan said,
Typical artificial supply issues, done deliberately to drum up demand and increase media attention.

We're not stupid, Apple. Well, not all of us, anyway.

Has to be true. There's simply no way a company like Apple who've been in the smartphone business now for a good few years, don't know what demand for their products will be. And even if they grossly overestimated on the initial amount to make, they'd sell them over coming months anyway.

It's surely only to increase hype and demand.

FloatingFatMan said,
Typical artificial supply issues, done deliberately to drum up demand and increase media attention.

We're not stupid, Apple. Well, not all of us, anyway.

You guys keep saying this and it is simply a false ifan based BS statement.

The reason they likely don't have any is because of the delays due to the sensor which was rumored before and were likely true. Could be other suplly issues. The demand is going to be as high as it is going to be. To assume these company's who are out to make money would shorten supply on purpose is just the stupidest thing I have ever heard.

Edited by Steven P., Sep 18 2013, 2:17pm :

TechieXP said,
You guys keep saying this and it is simply a false ifan based BS statement.

The reason they likely don't have any is because of the delays due to the sensor which was rumored before and were likely true. Could be other suplly issues. The demand is going to be as high as it is going to be. To assume these company's who are out to make money would shorten supply on purpose is just the stupidest thing I have ever heard.

You think an iFan would call out the company he so loves on deliberately drumming up a demand?

You are hilarious.

stevan said,

You think an iFan would call out the company he so loves on deliberately drumming up a demand?

You are hilarious.

Yea they would...I see it all the time. You need to visit other sites, not just Neowin.

I wouldn't doubt they're running low either, as demand seems to be far greater than there was with the 4s, as least from what I'm gathering at our retail store out here.

TechieXP said,

To assume these company's who are out to make money would shorten supply on purpose is just the stupidest thing I have ever heard.

Probably the only time I've agreed with you.

Artificially shortening supply is bad for business because Apple runs the risk of people going into a store looking for the new iPhone, but walking out with a Galaxy phone instead.

Just learned some new info this morning that, supposedly, they were to have a greater supply of iPhones than they have had in their previous launches. If that's true, and they're still running into issues with supply, then I'd say that says a lot to be honest.

I want to see how the numbers will look for this release.

omgben said,

Probably the only time I've agreed with you.

Artificially shortening supply is bad for business because Apple runs the risk of people going into a store looking for the new iPhone, but walking out with a Galaxy phone instead.

There's a huge difference between rumour that they're short, and -actually- being short. It get's people into 10 day long lines in their rush to get one before they run out, even though they're probably not going to actually run out.

Really, it's one of the oldest marketing tricks in the book...

FloatingFatMan said,

There's a huge difference between rumour that they're short, and -actually- being short. It get's people into 10 day long lines in their rush to get one before they run out, even though they're probably not going to actually run out.

Really, it's one of the oldest marketing tricks in the book...


How many phones you think Apple can make in 3 months? Apple has over 600M potential buyers and that is counting the fanbois, and then you have to count first time buyers as there will always be some.

There are things money can't buy. FACT. A single company can't produce enough product of this type in such a small amount of time. If the devices had been in production for a year, that would be one thing. But for phones that likely went into product in July/August, supply is going to be limited due to production time.

Foxconn likely can only product up to 1M of these in 30 days. Even if Apple had 5M avail to sale, 5M can't stretch across the whole world in huge numbers.

Stop with the BS. Apple who needs the money and is going to get it anyways over the year, isn't going to purposely short production amounts to increase demand. They already have the demand. That is why you all comments about them likely doing it on purpose is pure speculation and BS.

It is improvable thus idiotic.

I don't hate Apple. I'm neither a fanboy nor a hater. I just can see what they're doing. They're not the only ones who do it either. Artificial shortages are a staple when it comes to "the latest thing".

dead.cell said,
I wouldn't doubt they're running low either, as demand seems to be far greater than there was with the 4s, as least from what I'm gathering at our retail store out here.
I don't think the demand is greater. I think the demand is roughtly the same or even less. The thing is the demand of Apple product like iPhone is still strong enough that Apple knows whay they need. The problem is the devices go into production in a very short time before the official release/announcement. If you have 20M people who want your product right now, but in a couple months you can only product 1/3 that amount or less, than their will be shortages. With all that money Apple could easily contract more factories to produce stuff...like right here art home. But profits is more important than anything else.

TechieXP said,
I don't think the demand is greater. I think the demand is roughtly the same or even less. The thing is the demand of Apple product like iPhone is still strong enough that Apple knows whay they need. The problem is the devices go into production in a very short time before the official release/announcement. If you have 20M people who want your product right now, but in a couple months you can only product 1/3 that amount or less, than their will be shortages. With all that money Apple could easily contract more factories to produce stuff...like right here art home. But profits is more important than anything else.

Except all sites that are saying iPhone 5s demand to be higher than 5. But what do they know, right...