Apple's Networking and Supply Chain Mistakes Take a Bite Out of Its Shine

Apple's self-inflicted wounds during the iPhone 3G, App Store and MobileMe rollouts and iPhone software upgrade could have been prevented. And while CEO Steve Jobs has owned up to the mistakes, will they have a lasting effect on Apple?

CONNECTIONS
Apple
AT&T
Gartner
PAGE 3

And while Apple might have taken a PR hit during the opening weekend considering all the setbacks, Apple reported record third-quarter earnings on July 21, which excluded any new revenues from the iPhone 3G, App Store or MobileMe (which, unlike G-Mail, users have to pay for). Apple's stock price dipped after the launch date but has rebounded to where it was on July 11.

A month after the launch in August, App Store users had downloaded more than 60 million programs for the iPhone, and Apple has sold an average of $1 million a day in applications for a total of about $30 million in sales during the month, Jobs told the Wall Street Journal. Though Apple would not confirm, one analyst stated that Apple had sold 3 million of the 3G iPhones.

On the physical supply chain side, Apple and its provider partner AT&T are struggling to keep up with demand, which could become even direr when Apple begins selling the 3Gs in 20 new countries starting on Aug. 22. AT&T stores, for instance, haven't been able to replenish in-store stocks since the July 11 launch and have a backlog on the devices that is running 13 to 14 days, Computerworld reported. And Apple just announced a new distribution partnership with Best Buy, beginning in early September.

To the CurrentAnalysis analysts, Avi Greengart and Kathryn Weldon, snafus like Apple's recent troubles do not usually have any long-term repercussions, they write in their report, "but this one may have some effects, thanks to the outsized press coverage [that] Apple launches typically command."

"Even the most ardent Appleophiles may choose to wait a week or two before purchasing new products the next time around," note Greengart and Weldon. "This would not only spread out sales, it could actually weaken them; the initial product rush would be less of an event, the PR impact and press coverage would be muted, and thus, Apple's brand would not enjoy quite the same status and some sales could be lost."

Apple

Loading...
Mobile MarketSpace
Retooling IT for a Mobile Workforce
Check out this research note from IDC for guidance. Learn more »
The Continued Evolution of Wireless Mobility
Learn about the two leading 4G technologies, the current status of deployed 4G networks, and how to manage long-term 4G costs Learn more »
Thinking About Deploying Mobile Broadband?
Explore lessons and best practices experienced by companies that have deployed mobile broadband to their workforce. Learn more »
Improving Healthcare Delivery with Role-Enabled Communications
Today, more healthcare IT organizations than ever are interested in implementing UC applications in a planned, cost effective manner. In order to meet their tremendous potential for improved healthcare delivery requires far more than UC; it requires role-enabled communications. Learn more »
Mobility Enables True Unified Communications
Deploying UC in conjunction with a mobility solution can increase employee productivity and improve customer service enabling workers to more easily collaborate from disparate locations. Learn more »
Making Consumer TwoFactor Authentication Cost-Effective
Offering your customers the security of two-factor authentication can help you boost your online business. Learn more »
Solve Five Key IT Security Challenges
Get a high level of security with minimal user impact. Learn more »
 
SPONSORED LINKS
 

Top 10 Lessons Learned for Corporate 3G Mobile Broadband Deployments

Mobile Security: The Essential Ingredient for Today's Enterprise

White Paper: Legacy Tools: Not Built for the Helpdesk

Learn how to maximize the mobile web opportunity

Upgrading to VMware vSphere with vWire

Maximizing website Return on Information with high-quality search

See how AT&T can help protect your network.

Webcast: Unleashing the Power of Customer Data

White Paper: Improve Agility with Operational Responsiveness

Taking a Seat at the Executive Table: The Reality of Virtualization

White Paper: Next Generation Remote Infrastructure Management

Keeping Your Members Safe from Online Scams and Predators

The Total Economic Impact of Network Security Intrusion Prevention

Generation Remote Infrastructure Management - Changing the Paradigm

Cloud-Based Email Management: Opinion Shifts In Favor

eBook: How Can You Make Your People Productive Anywhere?

Achieving Business Agility with Application Grid

Taking the Service Desk to the Next Level

Learn about The Information Technology Infrastructure Library.

Return on Information: Google Enterprise Search pays you back. Get the facts.

VMware. The source for Business Infrastructure Virtualization.

ShoreTel tells businesses to untangle from competitors' complexity and turn to its brilliantly simple UC solution

Top Five CIO Challenges

Read the RSA report: Security for Business Innovation

64-page prescriptive guide to security, compliance, and IT operations.

4G Revisited. The Continued Evolution of Wireless Mobility.

White Paper: 5 Best Practices for Smartphone Support

Five-Step Mobility Management Plan

White Paper: Visibility and the New Normal of Mobile Work

Return on Information: Google Enterprise Search pays you back

Cut Costs & Green Your IT Operations with PC Power Management

White Paper: 4 Customer Service Myths

White Paper: Managed Security for a Not-So-Secure World

Global Research: CIOs Weigh In On Virtualization

5 Key Virtualization Management Challenges

Secure Email and Web-Based Communication from Evolving Attacks

WagerWorks Takes Fraudsters Out of the Game using iovation

Seven Design Requirements for Web 2.0 Threat Protection

Increase UPS efficiency without sacrificing protection.

Learn how advanced forecasting tools can deliver significant business results for global corporations.

Lower IT Costs with Oracle Database 11g Release 2

Ready to virtualize tier one applications? Check your virtualization maturity.

Seven Ways ITIL Can Help You in an Economic Downturn

Tips for successful virtualization management.

AT&T Synaptic Storage as a Service. Expand on demand

Trend Micro ranked #1 against real-world malware. Read more.

Webinar: Jump-start your in-house e-discovery with Ringtail QuickCull from FTI Technology

Streamline IT Costs. Boost Performance with WAN Optimization.

Build your 1st app FREE with Force.com

TDWI checklist helps define data readiness for analytics. Download report.

 
 
RESOURCE CENTER